Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A firm carries out a successful policy of predatory pricing. What happens to the prices charged by the firm in the short run and in the long run?

  • Aprices in the short run: rise; prices in the long run: rise
  • Bprices in the short run: rise; prices in the long run: fall
  • Cprices in the short run: fall; prices in the long run: rise
  • Dprices in the short run: fall; prices in the long run: fall

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