When Is Predatory Pricing a Most Effective Entry Barrier

Multiple Choice

When is predatory pricing a most effective entry barrier?

A) When the incumbent has incurred them and the entrant has not
B) When incumbents have long-standing relationships with suppliers and customers
C) When channels are few and hard to replicate
D) When a firm has a reputation for toughness or competes in multiple markets
E) When marginal costs are low and flooding the market causes large price reductions