Stephen's Steel Mill has decided that lobbying Congress to pass a tariff on imported steel will cost them less than trying to modernize its facility to compete with foreign steel prices.Stephen's Steel Mill will:

Question

Quizplus · Accepted Answer

Stephen's Steel Mill has decided that lobbying for a tariff is the most cost-effective strategy to compete with foreign steel prices. This is an example of rent-seeking, which refers to organizations seeking to gain economic benefits through government intervention rather than through productive activities. Therefore, Stephen's Steel Mill is likely to participate in rent-seeking and lobby Congress for the tariff. Option A is unlikely because Stephen's Steel Mill has already decided that modernizing its facility is costlier than lobbying for a tariff. Option C is possible, but the decision depends on the cost-benefit analysis of modernization versus lobbying. Option D and E are not relevant to the decision to lobby for a tariff.

Stephen's Steel Mill Has Decided That Lobbying Congress to Pass