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:

Informal Agency Rule Making

A process used by administrative agencies to create rules and regulations through procedures that are less formal than the traditional rulemaking process, often involving less public input.

Privacy Act

Legislation designed to protect the personal information of individuals from unauthorized use or disclosure by the government or other entities.

Enabling Legislation

Laws passed by a legislative body that provide the means for governmental agencies or bodies to enact and enforce regulations.

Animal Protection Commission

A governmental or non-governmental organization dedicated to ensuring the welfare and protection of animals, often by enforcing laws and regulations.