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

question 18

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.In this case,the product $p \cdot M _ { l }$

• 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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Definitions:

Unconditionally Appropriated

refers to funds or assets that have been allocated without any conditions or restrictions for their use.

Common Carrier

A transportation business that specializes in the transport of goods.

Title

A legal term referring to the rightful ownership of property, including the rights to use, sell, or lease it.

Paid

The state of having received money or compensation for services or goods.