Sellers Have a Strong Incentive to Lobby Government for Legal

question 76

Multiple Choice

Sellers have a strong incentive to lobby government for legal restrictions that would reduce the intensity of competition in their market because

• A) the firms wish to be more efficient than competition will permit.
• B) competition tends to result in lower prices and lower profits.
• C) legal restrictions that lessen competition in a market generally benefit consumers.
• D) the firms fear that intense competition will lead to higher profits that will attract additional rivals into the market.

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Definitions:

Exploitation Competition

Intraspecific competition in which all the individuals in a population “share” the limited resource equally so that at high population densities none of them obtains an adequate amount. Also called scramble competition. Compare with interference competition.

Oscillate

To move or swing back and forth at a regular speed, or to vary between opposing beliefs, feelings, or theories.

Density-dependent Factor

A factor whose effects on the size or growth of the population vary with the population density, such as disease or food supply.

Population Size

The number of individuals belonging to a specific species that live in a designated area.