The Following Graph Shows the Market Faced by a Monopolist

question 66

Multiple Choice

The following graph 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 _____.​ ​
Figure 16.5
​

• A)$5,00,000
• B)$8
• C)$2,50,000
• D)$1,50,000
• E)$75,000

---

Definitions:

Debts

Money that is owed or due to be paid to another individual or entity.

Sole Proprietorship

Business ownership in which there is no legal distinction between the sole proprietor’s status as an individual and his or her status as a business owner.

Partnership

A legal business structure where two or more individuals agree to share the profits and losses of a business.