Rent-seeking activity
A)is any revenue associated with long-term leases
B)is any costly action a firm undertakes to acquire or maintain monopoly power
C)is an attempt to inflate costs and reduce tax liabilities
D)occurs when a monopoly leases out some of its assets
E)is any rational action a consumer undertakes in seeking the lowest rent

Question

Quizplus · Accepted Answer

Rent-seeking activity refers to any costly action taken by a firm to acquire or maintain monopoly power in a market. This can include actions such as lobbying for government regulations that benefit their business, acquiring exclusive licenses or patents, or engaging in anti-competitive practices. It is a form of economic rent, where firms seek to profit without actually creating any value.

Rent-Seeking Activity