Rent seeking occurs when the seller
A)charges different prices for the product it sells, and the price differences do not reflect cost differences.
B)charges the highest price each consumer would be willing to pay for the product rather than go without it.
C)charges a uniform price per unit for one specific quantity, a lower price for an additional quantity, and so on.
D)spends resources to influence public policy in the hope of transferring income to themselves from others.

Question

Quizplus · Accepted Answer

Rent seeking occurs when a seller spends resources to influence public policy in the hope of transferring income to themselves from others. This can take many forms, such as lobbying for subsidies or tariffs that protect their industry from competition or influencing regulations that benefit their business. It is a way for a seller to increase their profits without creating any additional value.

Rent Seeking Occurs When the Seller