Abstract
Murphey could be correct in all of his contentions, and yet the claim of optimal resource allocation could still be valid. It is as if someone maintains that ice cream does not taste good, and the critic points out that this food item is commonly eaten after and not before meals, is typically served cold, comes in different flavors, and is eaten with a spoon. The point is, even were it true that the optimal allocation of resource theory will become a liability and needs to be rethought, that current labor-saving innovations lead to great inequality, it could still be the case that markets allocate resources optimally.