Consider a Market in Which One Firm Controls 80 Percent

Multiple Choice

Consider a market in which one firm controls 80 percent of the market. Suppose a new firm tries to enter the market, and the firm with market power responds by temporarily cutting its prices to very low levels. This practice is known as:

A) predatory pricing.
B) monopoly pricing.
C) aggressive pricing.
D) All of these are exemplified by this practice.