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:

Lack of Funds

A situation where there is an insufficient amount of financial resources available to meet the demands or objectives of a project or entity.