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rent-seeking behavior in a monopoly market:a.monopoly profit is higher than if monopolist did not engage in rent seeking behavior but net loss to society is lowerb. net loss to society is same as it would be in the absence of rent seeking behaviorc. net loss to society is less than it would be in th…
By definition, the answer is D. Rent seeking behavior is kind of like what it sounds like. It involves entities attempting to acquire an monopolistic privileges by obtaining things like land or diamond mines (so only they can produce diamonds because there are only so many diamond mines in the world) or they can try to use the government by getting laws passed (like a law that says everyone must buy Progressive auto insurance) or really any way that…

they can eliminate competition is rent seeking. In a monopoly, monopolists have already eliminated the competition so they used price discrimination to acquire economic rent. In perfect competition, price discrimination can actually increase consumer welfare but in a monopoly this effect is reversed.



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