Many Large Firms, Such as Walmart, Home Depot, Lowe's, and Barnes

Multiple Choice

Many large firms, such as Walmart, Home Depot, Lowe's, and Barnes & Noble, have been accused of predatory pricing because their business practices have put many local, mom-and-pop firms out of business. In reality, these large firms are not necessarily guilty of predatory pricing. Why?

A) Because the courts have found little evidence that predatory pricing has occurred.
B) Because the weak marketing activities of the local firms are to blame.
C) Because the large firms have efficient cost structures and lower variable costs.
D) Because the large firms are more guilty of superficial discounting than predatory pricing.
E) Because the large firms simply have stronger brand equity than local firms.