Which of the following is an incorrect statement about predatory pricing?
A)It benefits the firm engaging in predatory pricing to have deeper pockets than its prey.
B)Reputation for taking tough actions to drive a competitor out of the market can enhance the benefits received from the firm engaging in the predatory pricing.
C)Having its prey stockpile its product, produces more benefits to the firm engaging in the predatory pricing.
D)None of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Having the prey stockpile its product would actually harm the firm engaging in predatory pricing, as it would create excess supply and further decrease prices, which would hurt profits in the long run.

Which of the Following Is an Incorrect Statement About Predatory