when a firm pursues a predatory pricing strategy, it does so
a)to hire more staff to lower unempolyment
b) to discourage short run competition
c)to maximize profits in the long run
d)to increase supply to benefit consumers
e)to decrease supply to benefit consumers
Solution
When a firm pursues a predatory pricing strategy, it does so: B = to discourage short run competition.
A lot of times, large firms sell goods sell at prices less than their cost to discourage short run competition. In the short run their objective is not to earn profit but to kill the competition. After sometime when there are no competitors they increase the prices of the goods and start earning profits.
I hope my solution solves your query.
Regards.
.
when a firm pursues a predatory pricing strategy- it does so a)to hire.docx
1. when a firm pursues a predatory pricing strategy, it does so
a)to hire more staff to lower unempolyment
b) to discourage short run competition
c)to maximize profits in the long run
d)to increase supply to benefit consumers
e)to decrease supply to benefit consumers
Solution
When a firm pursues a predatory pricing strategy, it does so: B = to discourage short run
competition.
A lot of times, large firms sell goods sell at prices less than their cost to discourage short run
competition. In the short run their objective is not to earn profit but to kill the competition. After
sometime when there are no competitors they increase the prices of the goods and start earning
profits.
I hope my solution solves your query.
Regards.
