If rent-seeking behavior reduces competition in a market, cooperative surplus in that market will

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Rent-seeking behavior typically involves efforts to secure a larger share of existing wealth without creating new wealth, often through lobbying for regulations or policies that favor a particular group. This can lead to reduced competition in a market, as barriers to entry are raised or monopolistic conditions are created. When competition decreases, the market becomes less efficient, leading to a decrease in cooperative surplus. Cooperative surplus, or the total benefits that buyers and sellers receive from participating in the market, decreases because the distribution of resources becomes less optimal, prices may increase, and the overall market activity may decline.

If Rent-Seeking Behavior Reduces Competition in a Market, Cooperative Surplus