When a few rival groups spend money in competition for a license that grants them a monopoly for the provision of cable TV for an area, economists label this activity
A)perfect competition.
B)oligopoly.
C)monopolistic competition.
D)rent seeking.

Question

Quizplus · Accepted Answer

This activity is an example of rent-seeking behavior because the groups are spending money to gain a monopoly and exclude competitors rather than improving their products or services.

When a Few Rival Groups Spend Money in Competition for a License