The physical linking of a network to another network's essential facilities
A) hinders competition by allowing firms to work together to set prices and/or output.
B) helps promote competition in situations in which firms are able to use their market power to block competitors from entering the industry.
C) hinders competition by encouraging the linked networks to limit competition from other networks.
D) helps promote competition through regulation of the linked firms' prices and output levels.

Question

Quizplus · Accepted Answer

Interconnection allows firms to bypass potential barriers to entry that dominant firms might otherwise use to block new competitors, thereby promoting competition.

The Physical Linking of a Network to Another Network's Essential