Which is not an example of rent seeking?
A)Lobbying by industrial groups for special income tax reductions.
B)Lawsuits filed by a firm to keep a competitor from selling similar products.
C)A firm competing in an auction to purchase exclusive licenses to sell in a market.
D)A firm increasing production when the price for it product increases.

Question

Quizplus · Accepted Answer

Rent seeking is when individuals or firms seek to increase their wealth through non-productive means, such as lobbying for special privileges or creating barriers to entry for competitors. Option D is not an example of rent seeking because the firm is responding to market signals and increasing production in response to a price increase, rather than seeking to manipulate the market. Options A through C are all examples of rent seeking, as they involve attempts to gain an advantage through government intervention or preventing competition.

Which Is Not an Example of Rent Seeking