With competitive rent seeking under monopoly,
A) the monopolist's average total costs will increase so that its average total cost curve is tangent to the demand curve at the profit-maximizing price.
B) a monopoly uses all of what would be its economic profit to prevent other firms from taking its economic rent.
C) the full deadweight loss of monopoly is larger than in the absence of rent seeking.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

Competitive rent seeking under monopoly can lead to increased costs and reduced profits, as the monopolist expends resources to maintain its position, resulting in a larger deadweight loss.

With Competitive Rent Seeking Under Monopoly