In general, compared with firms which compete in only one market, among firms which face one another in multiple markets there is:
A) similar competitive rivalry.
B) less competitive rivalry.
C) more competitive rivalry.
D) no competitive rivalry.

Question

Quizplus · Accepted Answer

Firms that compete in multiple markets often engage in mutual forbearance, where they avoid aggressive competition to prevent retaliatory actions in other markets, leading to less competitive rivalry.

In General, Compared with Firms Which Compete in Only One