Sellers have a strong incentive to lobby government for legal restrictions that would reduce the intensity of competition in their market because
a. the firms wish to be more efficient than competition will permit.
b. competition tends to result in lower prices and lower profits.
c. legal restrictions that lessen competition in a market generally benefit consumers.
d. the firms fear that intense competition will lead to higher profits that will attract additional rivals into the market.
B
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The three types of unemployment are
A) voluntary, involuntary, and structural. B) voluntary, part-time, and cyclical. C) frictional, part-time, and involuntary. D) frictional, structural, and cyclical.
The income effect implies that there is a positive relationship between
A) income and the unemployment rate. B) the unemployment rate and the inflation rate. C) aggregate supply and aggregate demand. D) monetary growth and interest rates.