A compensating differential must emerge, with Firm A paying more than Firm B. A compensating differential must emerge, with Firm B paying more than Firm A. A compensating differential will likely not emerge, because 7 workers are indifferent between Firms A and B, as long as both firms offer the same salary. A compensating differential may or may not emerge, but if it does emerge then the relative demand for labor between the 2 firms will determine which firm offers higher salaries. A compensating differential may or may not emerge, but if it does emerge then salaries are higher in Firm A than in Firm B