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.

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Definitions:

Bookcases

Furniture designed to store and display books, typically consisting of horizontal shelves.

Supplier-customer Combinations

Various possible pairings or relationships between suppliers and customers in a market or supply chain.

Mutually Exclusive

Events that cannot happen simultaneously.

Simple Events

In probability, a simple event is a single outcome within a sample space, not composed of other events.