Refer to Figure 3.4. Suppose the graph depicts a one-wage monopsony after the Civil War, such as a textile mill in the South. The firm pays a wage equal to
a. Wc, and producer surplus equals zero.
b. Wa, and producer surplus equals area e+f+g+h+i
c. Wb, and producer surplus equals are h+i
d. None of the above.
Answer: None of the above.