The time and money spent by a monopoly firm on lobbying for favorable government policies is called
A)the capitalized value of the firm
B)limit pricing
C)rent-seeking activity
D)administered pricing
E)implicit cost

Question

Quizplus · Accepted Answer

Rent-seeking activity refers to when a firm spends time and resources lobbying the government to grant them favorable policies, subsidies, or other benefits. This is typically done by monopoly firms to protect their position and maintain their profits. It can be seen as a type of waste as the resources spent on lobbying could have been used to produce goods and services that benefit society.

The Time and Money Spent by a Monopoly Firm on Lobbying