If an electric power company hires an expensive lobbying firm to convince the utility commission to increase the company's utility rate ceiling, this would represent

Question

Quizplus · Accepted Answer

Rent-seeking behavior refers to the practice of individuals or companies spending resources to gain economic profit through manipulation or exploitation of the economic or political environment rather than through trade and production of wealth. In this case, the electric power company is attempting to influence regulatory decisions to increase its profits, which is a classic example of rent-seeking.

If an Electric Power Company Hires an Expensive Lobbying Firm