Exhibit 16-4 
Refer to Exhibit 16-4.Suppose the government announced it would give monopoly power to one firm in the industry through an exclusive license.According to the theory of rent seeking, what is the maximum amount that might be spent on rent seeking to get that license?
A) $500, 000
B) $8
C) $250, 000
D) $150, 000
E) $75, 000
Correct Answer:
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