The Fact That Monopoly and Monopsony Exist in Resource Markets

question 350

Multiple Choice

The fact that monopoly and monopsony exist in resource markets means that

• A)the marginal productivity theory of income distribution is valid.
• B)resource prices do not always measure contributions to output.
• C)the resulting income distribution is ethically correct.
• D)income shares do not exhaust the total output.

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Definitions:

Dissolved

A process in which solids are mixed into liquids to create a uniform solution, commonly occurring in both nature and chemical reactions.

Chemical Weathering

The breakdown of rocks and minerals through chemical reactions with substances in the environment, like water, oxygen, and acids.

Critical Factor

An essential element or condition required for a process or outcome to occur, often determining success or failure.

Gentle Slopes

Slopes with a gradual incline, typically found in landscapes where erosion has smoothed the terrain over time.