The following graph shows the market faced by a monopolist. Suppose the government decides to give monopoly power to one firm in the industry through an exclusive license. According to the theory of rent seeking, the maximum amount that the monopolist would spend on rent seeking to get that license is _____.
Figure 16.5
A) $5,00,000
B) $8
C) $2,50,000
D) $1,50,000
E) $75,000
Correct Answer:
Verified
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