Larger Hardware advertises very low prices on standard items.Smalltown Hardware is having trouble competing and files a predatory pricing lawsuit against Larger.To win the case,Smalltown must prove:
A) Larger Hardware is selling its products below cost.
B) Larger Hardware intends Smalltown to go out of business.
C) if Smalltown goes out of business, Larger will be able to earn sufficient profits to recoup its prior losses.
D) All of the above.
E) Only (a) and (b).

Question

Quizplus · Accepted Answer

Smalltown must prove all three elements: that Larger is selling below cost, intends to drive Smalltown out of business, and can recoup losses after eliminating competition.

Larger Hardware Advertises Very Low Prices on Standard Items