In building a model to analyze economic situations, one of the important assumptions is

Which of the following actions can be categorized as rent seeking?

a. Increase in the income tax rates by the government b. Lobbying efforts of individuals or groups to gain favors from the government c. Profit maximizing firms charging a price greater than their marginal costs d. Export of goods from developing to developed countries e. Government intervention in the real estate market

In a perfectly competitive market, the horizontal sum of all the individual firms' supply curves is

a. zero. b. equal to the industry profits. c. the market supply curve. d. a horizontal line.