What Is an Accurate Description of Predatory Pricing

question 12

Multiple Choice

What is an accurate description of predatory pricing?

• A)It is legal in the United States.
• B)It occurs when a firm sets a very high price for one or more of its products.
• C)It is illegal in the United States under both the Sherman Antitrust Act and the Federal Trade Commission Act.
• D)It is legal in the United States when a company wants to set a very low price to drive its competition out of business.
• E)It occurs when there are many firms competing for customers in a given market but their products are differentiated.

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Definitions:

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