If the automobile industry has become highly concentrated and cartelized.To maintain profits, firms may

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One way for highly concentrated and cartelized firms to maintain profits is to prevent entry of new firms. This allows the existing firms to have more control over the market and maintain their prices and profits. Allowing newcomers to enter the market or becoming price takers would reduce firms' control and potentially lower profits. Lowering prices to raise revenues may also lead to reduced profits if it results in lower profit margins.

If the Automobile Industry Has Become Highly Concentrated and Cartelized