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Brenda Reynolds
on Dec 11, 2024

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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.

Legal Restrictions

Rules and regulations imposed by law that limit or define the actions individuals or organizations can perform.

Intensity of Competition

The degree of rivalry among firms in a particular market, heavily influencing their pricing, marketing, and product development strategies.

Lobby Government

The act of attempting to influence government officials' decisions or policies, typically conducted by individuals, companies, or organizations.

  • Understand how competition affects market prices and production levels.
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Gerish PrasadDec 14, 2024
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