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definition: Predatory pricing is when one firm sells a product below cost in order to drive its competition out of the market
- This is also very illegal – why? - This drives out competition and leads to either an oligopoly or monopoly - Then when their competition is gone, they raise prices a great deal to make back all of their lost profit connected key terms:monopolies | oligopolies
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▪ amazon selling brand new book (priced 30 at barnes and noble) for 15 on amazon |