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:

Social Contacts

Interactions and connections with other people in a social context.

Immediate Family

A person's closest relatives, usually consisting of parents, siblings, and children.

Phallic

Relating to or resembling a phallus or penis, often used in the context of psychological and symbolic interpretations of shapes and objects.

Freudian Stage

A phase in Sigmund Freud's theory of psychosexual development, where each stage is associated with a particular conflict that must be resolved for healthy psychological development.