One major fault with factor pricing analysis is that marginal productivity theory merely attempts to justify the income distribution that the capitalist system yields.

A monopolist's price is "less than fair value" when it sells in export markets at prices ________ prices in its domestic markets or at prices _________ its average costs of production.

a. above; above b. above; below c. below; above d. below; below

When society overallocates resources to a product it means that the:

A. marginal benefit is less than the marginal cost. B. opportunity cost of the product is decreasing. C. investment in the product is declining. D. marginal benefit is greater than the marginal cost.