An exclusion contract
A)is a form of entry deferral.
B)gives a firm the right to be the exclusive provider of a good in a particular market.
C)may not always be profitable for the incumbent.
D)All of the above.

Question

Quizplus · Accepted Answer

An exclusion contract is a form of entry deferral that gives a firm the right to be the exclusive provider of a good in a particular market. However, it may not always be profitable for the incumbent to maintain such exclusivity. Therefore, all of the options (A, B, C) are correct.

An Exclusion Contract