Suppose an airline sells its tickets at an artificially low price in order to force an efficient competitor out of the market and thus reduce long run competition.This firm has adopted:

Question

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This scenario describes predatory pricing, which is the act of setting low prices to force a competitor out of the market. This strategy aims to eliminate competition and allows the firm to raise prices after the competitor leaves. Predatory pricing is considered an anticompetitive behavior and is illegal in many countries.

Suppose an Airline Sells Its Tickets at an Artificially Low