In the case of rent-seeking behavior in a monopolistic market:
A. the net loss to society is greater than it would have been in the absence of rent-seeking behavior.
B. the net loss to society is less than it would have been in the absence of rent-seeking behavior.
C. the net loss to society is the same as it would have been in the absence of rent-seeking behavior.
D. monopoly profit is higher than if the monopolist did not engage in rent-seeking behavior, but the net loss to society is lower.
Answer: A
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A monopolist's marginal revenue curve:
A) is perfectly inelastic. B) is perfectly elastic. C) lies below the demand curve. D) lies above the demand curve.