Rent-Seeking Activity _____

Rent-seeking activity _____

A) reduces an economy's overall efficiency by reducing production.
B) reduces consumer surplus, as consumers do not get to maximize their total utility.
C) reduces the profits of firms, as their marginal revenue no longer equals their marginal cost.
D) increases economic efficiency by increasing the net average gain of special-interest groups.
E) increases an economy's allocative efficiency by equating price to the marginal cost of production.