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Why would a firm choose to use one or more of the anticompetitive practices described in RegulatingAnticompetitive Behavior?
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Chapter 11
Monopoly and Antitrust Policy
Markets and Welfare
The Economics of the Public Sector
Firm Behavior and the Organization of Industry
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So we want to know why firms use anti competitive practices. So some anti competitive practices may include minimum resale price agreements, exclusive dealings or tying sales. And the answer to this is simply to make profits. What every firm seeks to do is to maximize their profits now the use anti competitive practices because it allows them to reduce competition in some regard and by doing so, kind of captures in, maintains a section off the market and may behave us a monopoly in some ways. But the big thing here is that they want to make profits, and so they're going to use, you know, any loopholes or anything that they're allowed to do in order it to reach that goal off profit maximizing.
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