All else equal, managers of dominant firms want ______competitive fringe firms in the market as this allows dominant firms to have a ______markup.

Question

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Managers of dominant firms prefer fewer competitive fringe firms in the market because this reduces competition, allowing the dominant firms to have a higher markup on their products or services. Fewer competitors mean less price competition, enabling dominant firms to maintain higher prices and profit margins.

All Else Equal, Managers of Dominant Firms Want ______Competitive Fringe