________ occurs when a large, powerful firm drives smaller firms out of the market by temporarily selling at an artificially low price.
A) A dominant strategy
B) A prisoners' dilemma
C) A maximin strategy
D) Predatory pricing

Question

Quizplus · Accepted Answer

Predatory pricing is a strategy used by a dominant firm to set prices below cost with the intention of driving competitors out of the market. Once the competition is eliminated, the firm can raise prices to recoup losses.

________ Occurs When a Large, Powerful Firm Drives Smaller Firms