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.

Question

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.

anonymous · Answer

http://www.answers.com/Q/Why_do_firms_try_to_avoid_competition

anonymous · Answer

If they have no one to compete with. Then they can do what they want.... so they A)

anonymous · Answer

hey can set prices higher and earn greater profits.?

anonymous · Answer

Yes they can