Sellers Have a Strong Incentive to Lobby Government for Legal

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.