Respuesta :
Predatory pricing is the practice called when a business prices its goods or services so low that other businesses can no longer compete and are driven from the market.
What is Predatory pricing?
Antitrust rules are broken by predatory pricing because it leaves markets more open to monopolies. However, accusations of this technique can be challenging to prove since defendants may be successful in arguing that price reductions are a natural result of competition rather than a calculated effort to weaken the market. Furthermore, due to the challenges in recovering lost revenue and effectively removing competitors, predatory pricing doesn't always achieve its goal.
Consumers may benefit temporarily from a price war sparked by predatory pricing. Because of the increased competition, consumers may experience a buyer's market with cheaper prices, more negotiating power, and more options.
The benefits for consumers might swiftly disappear or even reverse if the price war is successful in eliminating all or even some of the market rivals. In a monopolistic market, the monopoly-holding corporation may be able to hike prices while remaining certain that the consumer has no other options.
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