Asked by
Daveia Anderson
on Nov 26, 2024Verified
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.
Monopoly
An economic condition where a single company or entity has exclusive control over a particular industry or product, hence limiting competition.
Monopsony
A market situation where there is only one buyer for many sellers, giving the buyer significant power over prices.
Resource Markets
Resource markets are venues where resources or factors of production (such as labor, capital, and raw materials) are bought and sold, influencing the allocation and distribution of resources in an economy.
- Understand the principles of resource pricing and its impact on income distribution.
Verified Answer
GS
Learning Objectives
- Understand the principles of resource pricing and its impact on income distribution.