In a market where one unit of labor produces one unit of output,consumers prefer
A) a competitive labor market and a monopoly output market.
B) a competitive output market and a monopoly labor market.
C) a monopoly output market and a monopoly labor market.
D) None of the above-they are indifferent between A and B.

Question

Quizplus · Accepted Answer

Consumers generally prefer competitive markets for both labor and output because competition tends to lead to lower prices and higher quality. In the given options, neither A nor B provides a fully competitive market scenario, so consumers would be indifferent between them.

In a Market Where One Unit of Labor Produces One