_____ is the practice of using extra resources to compete for obtaining monopoly, and leads to _____.

Question

Quizplus · Accepted Answer

Rent seeking is the practice of using extra resources to compete for obtaining monopoly or economic rent. This leads to a deadweight loss, which is an economic inefficiency that occurs when the optimal level of production and consumption of goods and services is not achieved, resulting in lost welfare or surplus to society. X-inefficiency refers to the lack of productive efficiency in a monopoly, which leads to higher costs of production and a loss in producer surplus. Therefore, option B is the correct answer.

_____ Is the Practice of Using Extra Resources to Compete