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The Chicago School of Thought to Reasoning About Antitrust Concludes

Question 50

Multiple Choice

The Chicago school of thought to reasoning about antitrust concludes that predatory pricing ________.


A) provides incentives that allows firms to engage in such acts
B) can deter some entry that would be desirable from the perspective of economic efficiency.
C) can drive a competitor out of a market by cutting prices below the competitor's costs
D) is unlikely to be successful, so it will not be attempted

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