PrepTest 71, Section 2, Question 22
From time to time there is a public outcry against predatory pricing�where a company deliberately sells its products at prices low enough to drive its competitors out of business. But this practice clearly should be acceptable, because even after its competitors go out of business, the mere threat of renewed competition will prevent the company from raising its prices to unreasonable levels.
From time to time there is a public outcry against predatory pricing�where a company deliberately sells its products at prices low enough to drive its competitors out of business. But this practice clearly should be acceptable, because even after its competitors go out of business, the mere threat of renewed competition will prevent the company from raising its prices to unreasonable levels.
From time to time there is a public outcry against predatory pricing�where a company deliberately sells its products at prices low enough to drive its competitors out of business. But this practice clearly should be acceptable, because even after its competitors go out of business, the mere threat of renewed competition will prevent the company from raising its prices to unreasonable levels.
From time to time there is a public outcry against predatory pricing�where a company deliberately sells its products at prices low enough to drive its competitors out of business. But this practice clearly should be acceptable, because even after its competitors go out of business, the mere threat of renewed competition will prevent the company from raising its prices to unreasonable levels.
Which one of the following is an assumption on which the argument depends?
Any company that is successful will inevitably induce competitors to enter the market.
It is unlikely that several competing companies will engage in predatory pricing simultaneously.
Only the largest and wealthiest companies can engage in predatory pricing for a sustained period of time.
It is only competition or the threat of competition that keeps companies from raising prices.
Any pricing practice that does not result in unreasonable prices should be acceptable.
0 Comments