The idea behind multipoint competition is to ensure that:
A)a rival does not dominate one market and use the profits from there to drive competitive attacks elsewhere.
B)the competitors cooperate with each other to establish a duopolistic regime,in much the same way as Boeing and Airbus have done in the aircraft industry.
C)no other competitors can enter the market unless they resort to licensing or franchising with the initial pioneers.
D)the main competitors can incubate growing technologies or business methods in new markets and transfer the gains to established markets.

Question

Quizplus · Accepted Answer

Economic theory suggests that rather like chess players jockeying for advantage,firms will try to match each other's moves in different markets to try to hold each other in check.The idea is to ensure that a rival does not gain a commanding position in one market and then use the profits generated there to subsidize competitive attacks in other markets.

The Idea Behind Multipoint Competition Is to Ensure That