If a monopoly engages in rent seeking,
i. its average total cost curve is lower than otherwise.
ii. it might or might not make an economic profit depending on how many other competitors also are rent seeking.
iii. it necessarily incurs an economic loss.
A) i only
B) ii only
C) iii only
D) i and ii
E) i and iii
B
You might also like to view...
Persistent negative current account balances will lead to ____
a. c and d b. d and e c. budget deficits d. appreciation of foreign currency e. depreciation of domestic currency
Consumers are willing to pay a higher price for a product with a brand name as opposed to a generic product because:
a. a brand name provides a signal about a product's quality and reliability. b. they are willing to pay more for the privilege of watching the firm's commercials. c. a product with a brand name is always of higher quality. d. consumers maximize utility by purchasing the most expensive products. e. consumers are irrational.
In 2011, what percentage of U.S. families had income levels below $75,000?
a. 20 percent b. 40 percent c. 60 percent d. 80 percent
Which, if any, of the present values below are correctly computed?
a. A payment of $1,000 to be received one year from today, with a 8 percent interest rate, has a present value of $945.45. b. A payment of $1,000 to be received one year from today, with a 9 percent interest rate, has a present value of $911.11. c. A payment of $1,000 to be received one year from today, with a 10 percent interest rate, has a present value of $905.06. d. None of the above are correct to the nearest cent.