The courts may find the pricing of a particular good or service to be predatory when prices are

Question

Quizplus · Accepted Answer

Predatory pricing occurs when a firm sets its prices below the average variable cost in order to drive competitors out of business. This is anti-competitive behavior and ultimately results in a monopoly, which harms consumers as the lack of competition can lead to higher prices and lower quality goods or services. Therefore, the correct choice is B, as the price is set below the average variable cost.

The Courts May Find the Pricing of a Particular Good