Although predatory pricing leads to short-run losses for the firm, it can be profitable in the long run.

Name: Although predatory pricing leads to short-run losses for the firm, it can be profitable in the long run.
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Question

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Predatory pricing can drive competitors out of the market, allowing the firm to increase its market share and eventually raise prices to a profitable level. However, this strategy is often illegal and can harm consumers in the short run by reducing competition.

Although Predatory Pricing Leads to Short-Run Losses for the Firm