_____ occurs when firms engage the same rivals in numerous markets.
A) Multimarket competition
B) Explicit collusion
C) Cross-border dumping
D) Cross-market retaliation

Question

_____ occurs when firms engage the same rivals in numerous markets.
A) Multimarket competition 
B) Explicit collusion 
C) Cross-border dumping 
D) Cross-market retaliation

Quizplus · Accepted Answer

Multimarket competition occurs when firms compete with each other in multiple markets, leading to strategic interactions and potentially affecting market outcomes. This type of competition can create opportunities for strategic advantages, such as leveraging resources, sharing costs, and coordinating actions across different markets to mitigate competitive threats. Explicit collusion involves illegal agreements among rivals to coordinate prices or output, while cross-border dumping refers to the practice of exporting goods to other countries at below-cost prices. Cross-market retaliation involves firms taking actions to harm a rival in one market in response to competitive actions in another market.

_____ Occurs When Firms Engage the Same Rivals in Numerous