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Discuss the Concept of Predatory Pricing

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Essay

Discuss the concept of predatory pricing.Is predatory pricing ethical? What,if anything,should governments do to limit the influence predatory pricing by importers on domestic industries?


Definitions:

Selling Expenses

are costs associated with marketing and selling a company's products or services, including advertising, sales staff salaries, and commissions.

Differential Revenue

The difference in revenue expected from two different decisions or alternatives.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.

Variable Factory Overhead

Variable factory overhead consists of production costs that vary with the level of output, such as utilities and indirect materials.

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