8. Define predatory pricing.

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Harilalchhetri910idn Harilalchhetri910idn

22-07-2024
Business

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8. Define predatory pricing.

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-22T09:29:11-04:00

Final answer:

Predatory pricing involves pricing below cost to eliminate competitors and is a tactic employed by some major firms.

Explanation:

Predatory pricing involves pricing below cost in order to drive a rival out of business. It is challenging for a firm to engage in predation as it requires the ability to recoup losses once the rival is eliminated. For instance, firms like American Tobacco, Standard Oil, and AT&T have been accused of engaging in predatory pricing.

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