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Author Question: Because of rent seeking, a monopoly may end up making zero economic profit. Is the previous ... (Read 128 times)

jman1234

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on: Jun 29, 2018
Because of rent seeking, a monopoly may end up making zero economic profit. Is the previous statement correct or incorrect? Why?
 
  What will be an ideal response?

Question 2

What is an isoquant?
 
  What will be an ideal response?


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sultana.d

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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 makes only zero economic profit.

Answer to Question 2

An isoquant is a curve that shows all of the combinations of labor and capital that can be used to produce a given level of output.


jman1234

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

emsimon14

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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