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.
Correct Answer:

Verified
Correct Answer:
Verified
Q52: Producers should hire resources until the total
Q228: Assume Manfred's Shoe Shine Parlor hires
Q229: Suppose capital and labor are used in
Q230: We say that the demand for labor
Q231: Assume Manfred's Shoe Shine Parlor hires
Q232: In a competitive resource market, a decrease
Q234: According to the marginal productivity theory of
Q235: Suppose a competitive firm in both the
Q236: A computer manufacturer's elasticity of demand for
Q237: Assume that a purely competitive firm