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The authors recommend that a small company restrict the number of licenses it issues to how many competitors?

User Mackarous
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Final answer:

The number of licenses a small company should restrict to limit competition isn't specified, but should be based on maintaining a competitive edge without violating market competition laws or standards. The exact number depends on industry, legal limitations, market size, and strategic considerations.

Step-by-step explanation:

The question regarding how many licenses a small company should restrict to competitors isn't directly answered by the provided references. However, considering the economic principle where licenses can represent a barrier to entry and create a form of monopoly or oligopoly, a small company may consider restricting licenses to a limited number of competitors to maintain competitive advantage or market power while not breaching constraints that might be set by regulation or market competition laws. The exact number of licenses a company should restrict would depend on various factors including industry standards, legal limitations, market size, and strategic business considerations.

For instance, if a company is in a market with a finite resource, like radio broadcasting frequencies, it might aim to purchase enough licenses to obtain a substantial market share without completely blocking all new competitors, which could be seen as anti-competitive behavior and might invite regulatory scrutiny.

User Matt Small
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