Question

Please help with these questions,

Question 16 0.16 pts Rent seeking occurs when O resources are used to deregulate a market through the political process. resources are used to maximize profits. O resources are used to secure monopoly rights through the political process O two firms try to enter the same market. O landlords attempt to raise the rent on tenants Question 17 0.16 pts Use the following scenario to answer the following questions: Babak owns a sports practice facility called Boston Batting Cages in Boston Massachusetts. During the first year of operation, Boston Batting Cages incurred many costs. In that year, Babak spent $5,000 on labor, $2,000 on maintenance and $1,000 on electricity. Babak took out a loan to open his business, in which he would have earned $1,500, and his previous job, which he could get back at any time, paid him $50,000 If Boston Batting Cages received $80,000 in revenues, what were the economics profits? $50,000 O $20,500 O $72,000 $80,000 O $51,500

Answer 1

Ans16) the correct option is resources are used to secure monopoly rights through the political process.

Ans17) the correct option is $72,000

Economic profit = revenue - cost = 80,000 -5,000 - 2,000 - 1,000 = 72,000

Ans18) the correct option is Firms are at the mercy of market forces.

Ans19) the correct option is D and H.

At social efficient point, price = MC

Ans20) the correct option is E + H