Microeconomics - real help only please?

Question

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 need not accurately measure contributions to output.

c. the resulting income distribution is ethically correct.

d. income shares do not exhaust the total output.

Answer 1

it's B;

A would be valid irrespective of given condn. fact is irrelevant, it means nopthing,D is false and C is true and related to fact(scarcity) but again not a 'necessary condn.'   B is just a negation of competition theory; hence most apt & SIMPLE, 4 competition exams.

hope am 'in time'

Answer 2

I would go with "A" because it makes the most sense.

Monopoly- Only ONE seller in a market where they have control over the entire market and there are many buyers.

Monopsony- Only ONE buyer in a market where there are many sellers available.

In order to have a perfect dispersal of income along with buyers/sellers there MUST be the possibility of a MONOPOLY and a MONOPSONY.

-Jerry, University of South Florida, Economics Major