The value of resources devoted to rent seeking will
A) at most equal the monopoly's economic profit.
B) reduce deadweight loss.
C) reduce consumer surplus.
D) raise output to an efficient level.

Question

Quizplus · Accepted Answer

Rent seeking involves expending resources to capture economic profit, often leading to inefficiencies. The value of resources devoted to rent seeking can at most equal the monopoly's economic profit, as firms will not spend more on rent seeking than the profit they expect to gain.

The Value of Resources Devoted to Rent Seeking Will