A monopolist that lowers its price and increases output, even at the expense of short-run profits, is engaging in:
A) predatory pricing.
B) price discrimination.
C) predatory discrimination.
D) multi-purpose pricing.

Question

Quizplus · Accepted Answer

Predatory pricing involves setting prices low to eliminate competition or discourage new entrants into the market, even if it means short-term losses for the firm.

A Monopolist That Lowers Its Price and Increases Output, Even