Exhibit 16.6 -Refer to Exhibit 16.6,which Shows the Market Faced by a Market

question 177

Multiple Choice

Exhibit 16.6

-Refer to Exhibit 16.6,which shows the market faced by a monopolist.Suppose the government decides to give monopoly power to one firm in the industry through an exclusive license.According to the theory of rent seeking,the maximum amount that the monopolist would spend on rent seeking to get that license is _____

• A)$500,000.
• B)$8.
• C)$250,000.
• D)$150,000.
• E)$75,000.

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Definitions:

Encoding

The method of transforming data into a format that enables its storage in our memory.

Retrieval

The act of retrieving and making conscious information that is kept in memory.

Serial Position Effect

The tendency to remember items at the beginning and end of a list better than those in the middle.

Retention

The ability to keep or hold information in memory over time.