Which of the following best defines the actions of firms to limit market competition?

The correct answer focuses on the concept of monopolisation, which refers to the actions taken by firms to gain control over a market, effectively reducing or eliminating competition. Monopolisation can involve various strategies, such as underpricing competitors, establishing barriers to entry, or acquiring rival companies, all aimed at creating a dominant market position that limits consumer choice and drives competitors out of the market.

Market expansion relates to growing a company’s market share or entering new markets, which does not inherently limit competition but rather seeks to increase it. Free trade practices are centered around reducing barriers to trade, promoting competition among firms and increasing consumer welfare, which contrasts with the idea of limiting competition. Regulatory compliance involves adhering to laws and regulations set by authorities, promoting fair competition and protecting market integrity, again not aimed at limiting competition. Therefore, monopolisation is the most accurate term for the intentional actions of firms to restrict competition in their respective markets.