The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-Like profit-seeking, rent seeking is also a productive activity and contributes to the growth of the economy.

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-Like profit-seeking, rent seeking is also a productive activity and contributes to the growth of the economy.

Quizplus · Accepted Answer

Rent seeking activities do not contribute to the growth of the economy as they involve the transfer of resources from productive use to unproductive use. They can create inefficiencies in the market and result in lower productivity and economic growth.

The Figure Given Below Represents an Imperfectly Competitive Resource Market