A firm engaging in rent seeking activity A) is breaking the ...

[olgavictoria]

A firm engaging in rent seeking activity
 
  A) is breaking the law.
  B) is willing to spend up to the gain in producer surplus.
  C) is irrational.
  D) increases societal gain.

Question 2

Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers
 
  A) increases consumer surplus.
  B) increases total welfare.
  C) increases the deadweight loss.
  D) None of the above.

[DHRUVSHAH]

Answer to Question 1

B

Answer to Question 2

C