« previous next »

Author Question: Because of rent seeking, a monopoly may end up earning a normal profit. Is the previous statement ... (Read 78 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?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Normal red blood cells. Normal red blood cells.
Ranges of normal temperature values Ranges of normal temperature values
Super Taster Tongue vs. Normal Super Taster Tongue vs. Normal
Normal white blood cell and a white blood cell undergoing apoptosis Normal white blood cell and a white blood cell undergoing apoptosis
Brain metabolism in a schizophrenic individual (left) and a normal individual (right). These scans o Brain metabolism in a schizophrenic individual (left) and a normal individual (right). These scans o
Bone formation in normal mice and mutants for the runt gene Cbfa1 Bone formation in normal mice and mutants for the runt gene Cbfa1
Video: Hierarchical Sequencing Method - Sequence Tagged Sites

For a complete list of videos, visit our video library