This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Because of rent seeking, a monopoly may end up making zero economic profit. Is the previous ... (Read 65 times)

jman1234

  • Hero Member
  • *****
  • Posts: 560
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?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sultana.d

  • Sr. Member
  • ****
  • Posts: 320
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

  • Member
  • Posts: 560
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Early cities were small economic centers surrounded by walls to keep out enemies. These cities had ... Early cities were small economic centers surrounded by walls to keep out enemies. These cities had ...
Economic and Social Development Economic and Social Development
Economic and Social Development Economic and Social Development
The melting of glaciers and ice sheets is making an increasing contribution The melting of glaciers and ice sheets is making an increasing contribution
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
economic question economic question
Video: Male Reproductive System - The gonadotropin releasing hormone

For a complete list of videos, visit our video library