Some companies will drop prices to a point where competitors may question their motives. Although federal law prohibits predatory pricing and similar actions, the situations are rarely prosecuted because it is difficult to prove and
A) the fines are so low it's not worth the effort.
B) consumers gain from artificially low prices.
C) primary jurisdiction is often with the states.
D) few lawyers are qualified to prosecute or defend charges in this area.

Question

Quizplus · Accepted Answer

Primary jurisdiction is often with the states, meaning that the federal government will typically defer to state authorities to prosecute predatory pricing cases.

Some Companies Will Drop Prices to a Point Where Competitors