Businesses that develop schemes to deter potential competitors are engaged in:
APublishing their trade secrets
BIntimidating potential competition
CMaximising consumer welfare
DReducing their own output
Answer & Solution
Correct answer: B. Intimidating potential competition
1. Barriers to entry are not always inherited; sometimes they are constructed.
2. Businesses have developed a number of schemes for creating barriers to entry.
3. Those schemes work by deterring potential competitors from entering the market.
4. The heading for that behaviour is intimidating potential competition.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 9 'Monopoly', sections 9.1-9.2_
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