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Predatory Pricing Is a Type of Price Discrimination That

Question 131

Multiple Choice

Predatory pricing is a type of price discrimination that


A) allows prices to be cut to the level of variable costs.
B) is required when a company declares bankruptcy so that it can sell its remaining goods quickly.
C) is used in the food industry for perishable goods.
D) deliberately sets prices very low, sometimes even below costs, so as to minimize competition.
E) actually ensures more supply access as high prices reduce demand.

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