Which of the following is NOT a way by which firms can collude to reduce the threat of new competitors?
A)Working together to increase the barriers to entry.
B)Developing common technology standards that act as barriers to entry.
C)Moving away from using product differentiation as a barrier to entry.
D)Joint lobbying to increase the cost of entry.

Question

Quizplus · Accepted Answer

Moving away from using product differentiation as a barrier to entry does not help reduce the threat of new competitors. In fact, it may actually make it easier for new competitors to enter the market. A and D both involve increasing barriers to entry, while B involves creating a common barrier to entry through technology standards.

Which of the Following Is NOT a Way by Which