What is an accurate description of predatory pricing?
A)It is legal in the United States.
B)It occurs when a firm sets a very high price for one or more of its products.
C)It is illegal in the United States under both the Sherman Antitrust Act and the Federal Trade Commission Act.
D)It is legal in the United States when a company wants to set a very low price to drive its competition out of business.
E)It occurs when there are many firms competing for customers in a given market but their products are differentiated.

Question

Quizplus · Accepted Answer

Predatory pricing is illegal in the United States under both the Sherman Antitrust Act and the Federal Trade Commission Act. This occurs when a firm sets a very low price to drive its competition out of business.

What Is an Accurate Description of Predatory Pricing