Suppose Firm a Sets a Price Below Average Variable Cost

Multiple Choice

Suppose Firm A sets a price below average variable cost for two years.After the second year,Firm A's biggest rival goes bankrupt and exits the market.In the third year,Firm A raises prices significantly.Firm A is practicing

A) average variable pricing.
B) inversion pricing.
C) competitive pricing.
D) collusion pricing.
E) predatory pricing.