The best way to limit competition is to
A) lobby for a government-created barrier.
B) charge a low price.
C) produce a high quantity.
D) control a resource that is essential in the production process.
E) minimize costs.

Question

Quizplus · Accepted Answer

By controlling a resource that is essential in the production process, a firm can limit the number of competitors in the market. This is because other firms will be unable to access the resource, which can make it difficult for them to produce and compete effectively. Additionally, if the firm with control over the resource increases its prices or reduces its supply, it can further limit the competition.

The Best Way to Limit Competition Is to