Other things equal,which reduces competition in an industry?

Question

Quizplus · Accepted Answer

Patent laws protect the intellectual property of firms and give them a legal monopoly over their product or process. This reduces competition in the industry as other firms cannot produce or sell the same product without facing legal action.

Answer: C) An increase in the number of producers
 An increase in the number of producers creates competition in the market as firms compete with each other to attract customers. This reduces the market power of each individual firm and can lead to lower prices and increased innovation.

Answer: D) None of the above
 Freedom of entry for new firms and an increase in the number of buyers both increase competition in the industry, rather than reducing it.

Other Things Equal,which Reduces Competition in an Industry