An insurance company has procured all the capacity available in its market for $100 million. Thus, the company has placed a lock on the resources that other firms may require to develop their products. Which of the following is being exemplified in this case?
A)A tit-for-tat strategy
B)A limited competitive access to scarce resources
C)A low-end disruptive innovation
D)The Nash equilibrium

Question

Quizplus · Accepted Answer

The insurance company has procured all the available capacity in its market, which has limited the competitive access to scarce resources for other firms. This is an example of limited competitive access to scarce resources.

An Insurance Company Has Procured All the Capacity Available in Its