The Use of Price Skimming Discourages Competitors from Entering a Market

question 167

True/False

The use of price skimming discourages competitors from entering a market.

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Definitions:

Sherman Act

A United States antitrust law passed in 1890 that prohibits monopolistic practices and promotes competition.

Horizontal Restraint

A type of anti-competitive practice that occurs between businesses at the same level of the supply chain, such as agreements between competitors to fix prices or divide markets.

Market Extension Merger

A merger between companies in similar industries but different markets, aimed at expanding the market reach of products or services.

Federal Trade Commission

An independent agency of the United States government tasked with promoting consumer protection and eliminating and preventing anticompetitive business practices.