Economists are skeptical that ________ occurs very often because firms engaging in it are certain to suffer an economic loss for a period of time.

Question

Quizplus · Accepted Answer

Predatory pricing is the act of setting low prices in order to drive competitors out of business, after which the firm can raise prices to gain monopoly power. However, economists are skeptical that it occurs very often because firms engaging in it are likely to suffer losses for a period of time, making it an unattractive strategy.

Economists Are Skeptical That ________ Occurs Very Often Because Firms