Asked by Natalie Nunez on Sep 24, 2024
Verified
Which of the following can a firm use to reduce competition in the market?
A) Locking in customers to long term contracts
B) Seek an exclusive government contract
C) Acquire patents
D) All the above
Locking in Customers
Refers to strategies used by companies to retain customers, often through the use of long-term contracts, proprietary technology, or loyalty programs.
Exclusive Government Contract
A legal agreement where a government grants only one company the right to provide goods or services, prohibiting competitors.
Acquire Patents
Process of obtaining legal rights to inventions or designs, ensuring exclusive use to the holder.
- Identify strategies that firms can use to reduce competition and enhance market position.
Verified Answer
KD
Kimberly Denise4 days ago
Final Answer :
D
Explanation :
Each of the options listed can be used by a firm to reduce competition in the market. Locking in customers to long-term contracts ensures a steady stream of revenue and reduces the likelihood of them switching to competitors. Seeking an exclusive government contract can provide a source of revenue that is not available to other competitors. Acquiring patents can give a firm exclusive rights to produce or sell a certain product, limiting competition. Therefore, all of these options can be used effectively to reduce competition in the market.
Learning Objectives
- Identify strategies that firms can use to reduce competition and enhance market position.