When a firm pursues a predatory pricing strategy, it does so
A. to hire more staff to lower unemployment.
B. to increase supply to benefit consumers.
C. to maximize profits in the long run.
D. to discourage short run competition.
Answer:C
When a firm pursues a predatory pricing strategy, it does so
A. to hire more staff to lower unemployment. B. to increase supply to benefit consumers. C. to maximize profits in the long run. D. to discourage short run competition.
Explanation: 39. Refer to the table below. The information pertains to the demand curve and the average cost curve for a natural monopoly firm. What will the price be in this market?