Predatory pricing in monopolies is the practice of:
A) increasing prices to prey on consumers.
B) increasing prices to raise revenue.
C) decreasing prices to deter potential competitors.
D) decreasing prices to deter potential consumers.

Question

Quizplus · Accepted Answer

Predatory pricing in monopolies means lowering prices to such an extent that potential competitors are unable to enter the market or sustain their business. The monopolist hopes to drive out competition and become the sole player in the market, allowing them to raise prices again in the long run.

Predatory Pricing in Monopolies Is the Practice Of