The presence of government in the market leads to:

Question

Quizplus · Accepted Answer

When the government is present in the market, there is a possibility of rent seeking behavior. This means that individuals or firms may try to obtain benefits from the government by lobbying, political influence, or other non-market mechanisms, rather than through productive economic activity. Rent seeking can result in inefficiencies and distortion in the allocation of resources. The other options (A, C, and D) are not directly related to the presence of government in the market.

The Presence of Government in the Market Leads To