Firm X Competes for the Monopoly Right to Produce and Sell

question 115

Multiple Choice

Firm X competes for the monopoly right to produce and sell widgets by expending resources to lobby politicians. The government decides to award the monopoly right to the firm. Which of the following is false ?

• A)The resources used to affect the transfer are expended in a socially wasteful manner.
• B)The resources used to affect the transfer are better used from society's point of view in the production of goods and services.
• C)The resources used to affect the transfer are not used in a wasteful manner from the firm's point of view.
• D)The rent the firm consequently earns is real economic rent.

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Definitions:

Compound

A substance made up of two or more elements chemically combined in fixed proportions.

Comminuted

Refers to a fracture in which the bone is broken into several pieces.

Open Fracture

A type of bone fracture where the bone breaks through the skin, increasing the risk of infection.

Spiral

A curve that winds around a fixed center point at a continuously increasing or decreasing distance.