Economists view rent seeking as
A) a good way to inspire competition between firms.
B) a good way to incentivize firms to invest in research and development.
C) essential to solving the problem of scarcity.
D) a detrimental form of competition.
E) beneficial to the consumer.

Question

Quizplus · Accepted Answer

Economists view rent seeking as a detrimental form of competition because it allows firms to seek profits by manipulating the market instead of creating competitive advantages through efficiency or innovation. This can lead to market inefficiencies and harm consumers.

Economists View Rent Seeking as