To keep a market from being contested,firms might
A)Increase their concentration ratio.
B)Practice price discrimination.
C)Match price reductions by rivals.
D)Seek to obtain a monopoly franchise from the government.

Question

Quizplus · Accepted Answer

Seeking to obtain a monopoly franchise from the government is the best choice for keeping a market from being contested because it would give the firm exclusive legal rights to operate in that market, preventing any potential competitors from entering. This is also the most extreme and controversial choice, as it can be seen as anti-competitive and monopolistic.

To Keep a Market from Being Contested,firms Might