In equilibrium,rent seeking eliminates the
A) deadweight loss.
B) economic profit.
C) consumer surplus.
D) demand for the product.
E) opportunity to price discriminate.

Question

Quizplus · Accepted Answer

Rent seeking is the process of using resources to secure monopoly rights, rather than investing in productive activities. This leads to an increase in economic costs and a reduction in economic profit. Therefore, in equilibrium, rent seeking eliminates economic profit.

In Equilibrium,rent Seeking Eliminates the