Recall the Application about the Native American Tribes in Michigan that had a monopoly in casino gambling to answer the following question(s).
-Recall the Application.When the state of Michigan agreed to collect a share of profits from the original 7 tribal casinos,the casinos were being granted a ________ and were engaging in ________.
A) monopoly; collusion
B) monopoly; rent seeking
C) patent; irrational behavior
D) patent; market manipulation

Question

Quizplus · Accepted Answer

The best choice is B as the Native American tribes were granted a monopoly in casino gambling, giving them exclusive control over the market. In return, the state of Michigan collected a share of profits, indicating that the casinos were engaging in rent-seeking behavior, where they seek to maximize profits by minimizing competition. Collusion, irrational behavior, patent, and market manipulation are not relevant to the scenario described in the application.

Recall the Application About the Native American Tribes in Michigan