Which of the following is an INCORRECT statement about predatory pricing?
A) It benefits the firm engaging in predatory pricing to have deeper pockets than its prey.
B) Reputation for taking tough actions to drive a competitor out of the market can enhance the benefits received from the firm engaging in the predatory pricing.
C) Having its prey stockpile its product produces more benefits to the firm engaging in the predatory pricing.
D) None of the statements are correct.

Question

Quizplus · Accepted Answer

Stockpiling its product by the prey would not benefit the firm engaging in predatory pricing. In fact, it would result in increased inventory costs for the prey and may cause it to exit the market sooner. Therefore, option C is incorrect. Options A and B are correct as they align with the strategies typically used in predatory pricing. Option D is incorrect as there are at least two correct statements.

Which of the Following Is an INCORRECT Statement About Predatory