Evidence of the intent to ________ is necessary to prove that a firm is engaged in predatory pricing.
A) lower prices after others are driven out of business
B) raise prices after others are driven out of business
C) increase quantity after others are driven out of business
D) lower average fixed costs after others are driven out of business
E) subsidize competitors so they are not driven out of business

Question

Quizplus · Accepted Answer

Predatory pricing involves setting prices low with the intent to eliminate competition, followed by raising prices once competitors have been driven out of business. This strategy is used to establish or maintain market dominance.

Evidence of the Intent to ________ Is Necessary to Prove