Rent seeking is defined as
A) charging higher prices for an apartment.
B) the act of obtaining special treatment by the government to create an economic profit.
C) charging a price below marginal cost.
D) selling a greater quantity than is profitable.
E) charging different prices for different units of the good or service.

Question

Quizplus · Accepted Answer

Rent seeking involves obtaining special treatment or favors from the government to create economic profit, such as subsidies or regulations that favor a particular business or industry. A simply involves pricing strategy, while C and D involve pricing decisions that may not be profitable in the long run. E describes price discrimination, which can actually increase economic efficiency.

Rent Seeking Is Defined as