« previous next »

Author Question: Because of rent seeking, a monopoly may end up earning a normal profit. Is the previous statement ... (Read 36 times)

corkyiscool3328

  • Hero Member
  • *****
  • Posts: 539
on: Jun 29, 2018
Because of rent seeking, a monopoly may end up earning a normal profit. Is the previous statement correct or incorrect? Why?
 
  What will be an ideal response?

Question 2

________ is the difference between the willingness to pay and the price paid for a good.
 
  A) Producer surplus
  B) Consumer surplus
  C) Seller's profit
  D) Revenue


xMRAZ

  • Sr. Member
  • ****
  • Posts: 363
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is correct. Competition among rent seekers might cause the successful person striving to create a monopoly to pay so much in order to create the monopoly that, when taking into account the cost of creating the monopoly, the person earns only a normal profit.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Maintenance of normal blood glucose levels. Maintenance of normal blood glucose levels.
Normal Ear Alignment Normal Ear Alignment
Multiple sclerosis (MS). (a) A disease characterized by the gradual development of small areas of ha Multiple sclerosis (MS). (a) A disease characterized by the gradual development of small areas of ha
People are living longer today than in previous decades People are living longer today than in previous decades
Normal red blood cells (round) and sickled red blood cells Normal red blood cells (round) and sickled red blood cells
The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ... The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ...
Video: Dissociative Disorders (Part 2)

For a complete list of videos, visit our video library