Question

differentiate between x- efficiency and rent seeking behavior of monopoly. what measure can be taken by the government to minimize the exploitative tendencies of a Monopolist​. 2 pages​

Answer 1

Answer:

The X inefficiency and rent seeking have significantly different implications for econom8c welfare.

Distinctions are drawn between pecuniary and real X - inefficiency and between sunk and continuing rent seeking costs .

The government can regulate monopolies through-

Prevent excess prices ........

Quality of service........

Promote competition ........

Monopsony power ......