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Consider Two Situations: in Situation a the Production of Widgets pMlp \cdot M _ { l }

Question 1

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Consider two situations: In situation A the production of widgets is monopolized by a single firm.In situation B the production of widgets is perfectly competitive.In both situations the supply of labor to widget makers is infinitely elastic at a wage of w.In this case,the product pMlp \cdot M _ { l }


A) will be the same in the two cases.
B) will be higher in case B than in case A.
C) will be higher in case A than in case B.
D) From the information given it is not possible to make a definite statement about the marginal value product of labor.

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