Predatory Pricing Occurs When a Firm

question 379

Multiple Choice

Predatory pricing occurs when a firm

• A)exercises its oligopoly power by raising its price through the formation of a cartel.
• B)exercises its monopoly power by raising its price.
• C)cuts its prices in order make itself more competitive.
• D)cuts its prices temporarily in order to drive out any competition.

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Definitions:

Product

The result of multiplying two or more numbers or expressions.

Conjugate

In mathematics, a conjugate refers to a component that is paired with another but differs in a certain way, such as the complex conjugate where the sign of the imaginary part is reversed.

Conjugate

A binomial formed by changing the sign of the second term of another binomial, commonly used to rationalize denominators.