Predatory Pricing Is Used Primarily To

question 81

Multiple Choice

Predatory pricing is used primarily to:

• A)discourage new firms from entering a market.
• B)reduce (limit)the profits of all of the firms in the industry.
• C)drive other firms out of a market.
• D)establish a minimum price all of the firms in the market will charge.

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Definitions:

Expense Accounts

Accounts used in accounting to track money spent or costs incurred in a company's operations to generate revenue, typically categorized by the nature of the expenses.

Liability Accounts

Accounts that represent amounts owed to others, including loans, accounts payable, and mortgages.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, recognizing the consumption, wear and tear, or obsolescence of physical or fixed assets used in operations.

Tax Return

A form filed with a government body declaring liability for taxation, containing details of income earned and taxes owed.