Why do firms try to avoid competition? They can set prices higher and earn greater profits. They can reduce production costs and earn higher profits. They can avoid taxes and thereby earn higher profits. They will have more money to advertise their products.

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02-03-2015
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Why do firms try to avoid competition? They can set prices higher and earn greater profits. They can reduce production costs and earn higher profits. They can avoid taxes and thereby earn higher profits. They will have more money to advertise their products.

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lrathburn lrathburn · Answer 1 · 2015-03-16T19:40:55-04:00

lrathburn lrathburn

16-03-2015

Firms try to avoid competition so that they can set higher profits and earn greater profits. With more competition, they have to competitively price their products.

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