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For a Firm to Be Engaged in Predatory Pricing, and for It

Question 39

Multiple Choice

For a firm to be engaged in predatory pricing, and for it to be successful:


A) It would have to charge a price less than the average variable cost of production.
B) It would have to drive rivals out of the market.
C) It would have to raise its prices after rivals were driven out of the market.
D) All of the above would have to be true.

Correct Answer:

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