A Price-Cost Squeeze Is Tactic Used

Multiple Choice

A price-cost squeeze is tactic used

A) to prevent potential competitors from entering a market.
B) by a vertically integrated firm to squeeze the margins of its competitors.
C) by a vertically integrated firm to charge downstream rivals a prohibitive price for an essential input; forcing rivals to use more costly substitutes or exit the industry.
D) to gain a critical mass of consumers by charging an initial low price.