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Chapter 11: Q. 5 (page 271)

Why would a firm choose to use one or more of the anticompetitive practices described in Regulating Anticompetitive Behavior?

Short Answer

Expert verified

For profit maximization.

Step by step solution

01

Step1. Concept

Anticompetitive practices, as the name suggests refer to the practices which leads to market power concentration in the hands of the firm practicing the same. These include tying sales, bundling, predatory pricing, etc.

02

Step2. Explanation

The ultimate aim of most firms is profit maximization. By undertaking anticompetitive practices, the firm increases the market power in hand, thereby improving profits.

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