A state may prohibit a seller from selling below cost if the purpose is to harm competitors.

Question

Quizplus · Accepted Answer

This statement is true. A state may prohibit a seller from selling below cost if the purpose is to harm competitors. This is known as predatory pricing and is considered an antitrust violation. States have the power to regulate business practices within their borders and may prohibit predatory pricing to protect competition and prevent monopolies from forming.

A State May Prohibit a Seller from Selling Below Cost