Rent seeking is the term given
a. to an attempt by firms to create a profitable monopoly even though resources may be wasted in the process.
b. to filing a lawsuit, which wastes resources, in the hope of obtaining monetary gain or a strategic market position.
c. to attempts by firms to obtain earnings without contributing to production.
d. All of the above are correct.
d
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Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, if the market quantity supplied is 18, the price must be
A) $2. B) $3. C) $4. D) $5.
Which of the following can act as a barrier to entry for new firms in an oligopoly market?
a. Increased capital usage b. Diseconomies of scale c. Control over an essential resource d. Increased investment in advertising