« previous next »

Author Question: Because of rent seeking, a monopoly may end up earning a normal profit. Is the previous statement ... (Read 82 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?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Normal karyotype. Normal karyotype.
Normal Breath Sounds Normal Breath Sounds
The Normal Distribution of Scores for a Standardized Intelligence Test The Normal Distribution of Scores for a Standardized Intelligence Test
Example of Reconciling a Bank Statement Cont. Example of Reconciling a Bank Statement Cont.
Neutrophils in a normal blood smear. Neutrophils in a normal blood smear.
Normal heart valves Normal heart valves
Video: Fetal Development of the Cardiovascular System

For a complete list of videos, visit our video library