A Company Engages in Predatory Pricing When It Deliberately Prices

question 85

True/False

A company engages in predatory pricing when it deliberately prices below its costs in an effort to drive competitors out of the market and restrict supply, and then raises prices rather than enlarge demand.

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Definitions:

Annulment

A court decree that invalidates (nullifies) a marriage. Although the marriage itself is deemed non-existent, children of a marriage that is annulled are deemed legitimate.

Terminated

Ended or concluded, often used in the context of employment to indicate that a worker's job position has been ended by the employer.

Notary Public

A public official authorized to witness the signing of legal documents and administer oaths, to help prevent fraud.

Bigamy

The act of entering into marriage with one person while still legally married to another.