Although the Practice of Predatory Pricing Is a Common Claim

question 214

Multiple Choice

Although the practice of predatory pricing is a common claim in antitrust suits, some economists are skeptical of this argument because they believe

• A)the evidence of its practice is nearly impossible to collect.
• B)predatory pricing is not a profitable business strategy.
• C)even though predatory pricing is a profitable business strategy, it is on balance beneficial to society.
• D)predatory pricing actually attracts new firms to the industry.

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Definitions:

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Securities and Exchange Commission

A U.S. federal agency responsible for regulating the securities industry, enforcing federal securities laws and regulating the stock and options exchanges.

Fair Practices

Refer to ethical and equitable procedures and policies adopted by organizations to ensure transparency, justice, and fairness in their operations.

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