The maximum amount a rent seeker would pay for a monopoly is the _______.
A) deadweight loss
B) monopoly's economic profit
C) market price
D) monopoly's normal profit

Question

Quizplus · Accepted Answer

The maximum amount a rent seeker would pay for a monopoly is the monopoly's economic profit. Economic profit includes both normal profit (the minimum amount necessary to keep a firm in its current activity) and the extra profit above this minimum. Rent seekers aim to capture this extra profit, which is generated due to the monopoly's power to set prices above competitive levels.

The Maximum Amount a Rent Seeker Would Pay for a Monopoly