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The Exercise of Market Power by Suppliers in Resource Markets

Question 32

Multiple Choice

The exercise of market power by suppliers in resource markets tends to


A) reduce income inequality, ensuring that all workers receive fair wages.
B) have little impact on the distribution of income.
C) increase income inequality by raising incomes of those able to "rig the market."
D) increase income inequality but is offset by the exercise of market power in product markets.

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