To acquire monopoly power in its market, Sugar, Inc., sets its prices substantially below the costs of production. Under antitrust law, this is

Question

To acquire monopoly power in its market, Sugar, Inc., sets its prices substantially below the costs of production. Under antitrust law, this is​

Quizplus · Accepted Answer

Setting prices below the cost of production to drive competitors out of the market and acquire monopoly power can be considered predatory pricing, which is a violation of antitrust laws if it results in the firm gaining monopoly power.

To Acquire Monopoly Power in Its Market, Sugar, Inc