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:

Non-standard Work

Employment that deviates from traditional norms in terms of hours, permanency, or contract conditions, often lacking in job security and benefits.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Convergent Thinking

A cognitive process in which the focus is directed at arriving at a single, correct solution to a problem.

Optimality Theory

A conceptual framework in linguistics that hypothesizes that observable forms of language arise from the interaction between conflicting constraints.