Methods of rent seeking include which of the following?
I. Buying a monopoly
II. Creating a monopoly
III. Price discrimination
A)I and II
B)I and III
C)II and III
D)III only
E)II only

Question

Quizplus · Accepted Answer

Rent seeking refers to the process by which individuals or firms seek to increase their wealth without creating any real value for society. Methods of rent seeking include buying or creating a monopoly, as this allows the individual or firm to charge higher prices without fear of competition. Price discrimination, which involves charging different prices to different customer groups based on their ability or willingness to pay, is not necessarily a form of rent seeking as it can sometimes lead to more efficient pricing and distribution of goods and services. However, it can also be a way for firms to extract more value from certain customers without providing any additional benefits, so it can sometimes be a form of rent seeking as well. Overall, choices (A) I and II are the best choices for methods of rent seeking.

Methods of Rent Seeking Include Which of the Following