For a monopoly,the value of the next worker equals
A)MR ∗ MPL.
B)(price + the effect of increased output on price)∗ MPL.
C)P(1+1/e)* MPL
D)all of the above.

Question

Quizplus · Accepted Answer

All the options describe the value of the next worker in a monopoly setting, taking into account the marginal product of labor (MPL) and the effect of output changes on price, which is captured by the price elasticity of demand (e) in option C.

For a Monopoly,the Value of the Next Worker Equals