Predatory Pricing Is

question 11

Multiple Choice

Predatory pricing is

• A) often effective and a relatively inexpensive means of eliminating competition.
• B) legal under the U.S. antitrust laws.
• C) the practice by which a large, powerful firm attempts to drive its competitors out of the market by temporarily setting an artificially low price.
• D) generally more effective when barriers to entry exist.

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Definitions:

Technological Advance

The development and application of new technologies and processes that improve efficiency, productivity, or bring new products to the market.

Product Demand

The desire or need for a specific product or service combined with the capacity to purchase it.

Revenues

The income received by a business from its various activities, typically from the sale of goods and services to customers.