Dumping and predatory pricing involve selling at very low


Dumping and predatory pricing involve selling at very low prices, even below cost, for the purpose of driving competitors out of business.  If a firm were to succeed it would be a monopoly and could raise prices accordingly. Unfortunately, most economists have failed to observe any situations such as this. Why would a predatory monopoly have difficulty driving out competitors, raising prices, and sustaining economic profits in the long-run in a market that was previously monopolistic on a global scale? Is there any particular feature of purely competitive or monopolistically competitive markets that suggests there is no basis for anti-trust laws within these markets?

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Business Economics: Dumping and predatory pricing involve selling at very low
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