Consider Two Situations: in Situation a the Production of Widgets

question 31

Multiple Choice

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.Which of the following statements is true?

• A)The marginal value product of labor will be the same in the two cases.
• B)The marginal value product of labor is higher in case B than in case A.
• C)The marginal value product of labor is 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.

---

Definitions:

Desired Response

The specific outcome or reaction that one aims to elicit from an action, experiment, or communication.

Circus Trainer

A professional who trains animals or people to perform specific acts or routines for entertainment in the circus.

Stimulus Discrimination

The learned ability to differentiate between two similar stimuli based on the different outcomes associated with each.

Response Generalisation

The process by which a subject exhibits learned responses not only to the original stimulus but also to similar stimuli.