Low prices are not considered predatory if:
A) They are collusive
B) Customers do not complain about them
C) They can be justified by cost differences
D) Price elasticity of demand is above 1.00

Question

Quizplus · Accepted Answer

Low prices can be justified as non-predatory if they are based on genuine cost differences, allowing a company to offer lower prices while still covering its costs and potentially making a profit. This is in contrast to predatory pricing, which involves setting prices low with the intent to eliminate competition and then raising prices once the competition has been driven out of the market.

Low Prices Are Not Considered Predatory If