"Rent seeking" is socially wasteful because
A)resources devoted to transferring rents are not used to produce goods.
B)wage income is converted into profit income.
C)it results in higher prices than would exist without monopoly.
D)it discourages innovation and risk taking.

Question

Quizplus · Accepted Answer

Rent seeking is considered socially wasteful because it involves allocating resources to secure economic rents (such as profits or revenues) through non-productive means, rather than using those resources to produce goods or services that add value to the economy.

"Rent Seeking" Is Socially Wasteful Because