Question

As part of your firm's outsourcing strategy for web development and marketing, why did you decide to take a multi-vendor approach?

Answer 1

A firm may choose to use anticompetitive practices to gain market control, increase profits, and create barriers to entry for competitors.

Step-by-step explanation:

A firm might choose to use one or more of the anticompetitive practices described in Regulating Anticompetitive Behavior for several reasons:

1. Market control: By engaging in anticompetitive practices, a firm can gain significant control over a particular market, which allows them to dictate pricing, limit competition, and increase their market share.
2. Increased profits: Anticompetitive practices can lead to higher profits for the firm. For example, if a firm engages in price fixing with other competitors, they can artificially inflate prices and generate more revenue.
3. Barriers to entry: By engaging in anticompetitive practices, a firm can create barriers to entry for new competitors. This makes it difficult for new firms to enter the market and compete, allowing the existing firm to maintain a dominant position.