Critics of the Marginal Productivity Theory of Income Distribution Claim

question 255

Multiple Choice

Critics of the marginal productivity theory of income distribution claim that the theory is flawed because of

• A)the law of diminishing returns.
• B)the existence of imperfect competition, such as of monopoly and monopsony, in output and resource markets.
• C)the problem of comparing different kinds of resources, such as capital and labor.
• D)government policies that redistribute income.

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Definitions:

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Preapproach Stage

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