I am referring to the HL Ahuja Microeconomics book and here is what I have understood -
- Clarks Version : Wage = Marginal Product of Labour ( w = MP(L) )
- Marshall Hicks Version: Wage = Value of Marginal Product of Labour (w = P.MP(L))
The author (and a lot of other sources on the net) both the above mean the same thing and the two versions of the marginal productivity theory differ only in their treatment of the supply curve for labour.
Question - how are the two versions same when wage equals to two different things ? It's apparently a simple point that I am having trouble grasping. Looking forward to any helpful clarifications. Thanks.