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Solution Library
New Firms Entering Competitive Market And What Is Not Rent-Seeking Behavior
Question
1. Which of the following activities is not rent-seeking behavior?
A) lobbying government to protect a monopoly position
B) arguing for free trade among nations
C) extending patents
D) lobbying Congress for tariff protection to reduce foreign competition
2. When new firms enter a competitive market:
A) it will cause an increase in demand.
B) it will cause an increase in supply.
C) it will cause a decrease in demand.
D) it will cause a decrease in supply.
Summary
These multiple choice questions belong to Economics. The 1st question is about what is not rent-seeking behavior and the 2nd question is about what happens when new firms enter a competitive market.
Total Word Count NA
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