Predatory pricing
A) is often an inexpensive way for a large firm to drive smaller firms out of a market.
B) is usually quite effective at driving smaller firms out of a market.
C) is illegal under antitrust laws.
D) is a form of price leadership.

Question

Quizplus · Accepted Answer

Predatory pricing is illegal under antitrust laws because it involves setting prices low with the intent to eliminate competition, which can harm consumers in the long run by reducing choices and potentially leading to higher prices once competition is eliminated.

Predatory Pricing