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:

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Philosophy of Manufacturers

The underlying beliefs and principles that guide the actions, decisions, and policies of individuals or entities that produce goods for market consumption.

Andrew Ure

A Scottish doctor, scholar, and significant figure in the Industrial Revolution known for his work in chemistry and contributions to industrial management.

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