Which of the following is an example of rent seeking behavior? O A. Amazon intro

Question

Which of the following is an example of rent seeking behavior? O A. Amazon introduced the Kindle to compete with say's Digital Reader. Amazon was motivated 0 B. Apple earned large profits from the development and sale of the iPhone. by the desire to earn profits from the Kindle but also increased the choice of digital music players available to consumers. O c. Recent increases in cigarette taxes faced lttle opposition from voters, many of whom were O D. US. sugar firms convinced Congress to impose a quota on imports of sugar rationally ignorant with respect to the tax

Explanation / Answer

Rent seeking behaviour is the action taken by firm or household to increase share of existing wealth(by manipulating social or political government) without creation of new wealth. Option D is the example of rent seeking behaviour as the us sugar firms lobby government for undertaking regulatory policy(quota) which causes financial benefits to them at the expense of consumers.

Answer- option D

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