Consider Two Situations: in Situation a the Production of Widgets

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.