When electric utility companies lobby state legislatures for continued protection from competition,this is an example of rent-seeking behavior.

Question

Quizplus · Accepted Answer

Rent-seeking behavior refers to actions taken by individuals or firms to influence the government or other authorities in order to maintain or increase their wealth or status, often at the expense of others. Electric utility companies seeking protection from competition can be seen as an example of rent-seeking behavior because they are seeking to maintain their position in the market and protect their profits, rather than competing on the basis of efficiency or quality of service.

When Electric Utility Companies Lobby State Legislatures for Continued Protection