Which of the following is NOT an example of raising rivals' fixed costs?
A) Existing doctors in a particular medical field lobby to require new doctors to acquire new licenses.
B) Yellow Cab Company lobbying New York City government officials for an ordinance that would require all taxi cab drivers to pay for a medallion, giving them the right to drive a cab in New York City.
C) Federal Express lobbying the U.S. Department of Transportation to increase annual terminal fees.
D) The New York Port Authority lobbying to increase the tolls on New York City's George Washington Bridge.

Question

Quizplus · Accepted Answer

Raising rivals' fixed costs involves actions that increase the fixed costs of competitors. Options A, B, and C are examples of this because they involve lobbying to impose new costs on entrants or competitors. Option D, increasing tolls on a bridge, does not specifically target competitors' fixed costs in a business sense but rather affects all users of the bridge equally, making it not an example of raising rivals' fixed costs.

Which of the Following Is NOT an Example of Raising