Which of the following explains why big business typically spends more on rent-seeking activities than consumers?
A) Lobbying is a public good to consumers.
B) Lobbying is a public good to businesses.
C) Labor unions in the involved firms.
D) Lobbying is a public good to businesses and labor unions in the involved firms.

Question

Quizplus · Accepted Answer

Big businesses spend more on rent-seeking activities because lobbying efforts can benefit all businesses in the industry, making it a public good for them. Consumers, on the other hand, do not typically see direct benefits from lobbying, so they spend less on such activities.

Which of the Following Explains Why Big Business Typically Spends