Economists Are Skeptical About the Degree to Which Predatory Pricing

question 30

Multiple Choice

Economists are skeptical about the degree to which predatory pricing is used because

• A) "price wars" are rarely observed in actual markets.
• B) when used as a warning to potential rivals,predation has minimal value.
• C) buy-outs are less costly than predation and have no offsetting disadvantages.
• D) firms can easily counter predation by "laying low" or borrowing funds.

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