Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A firm succeeds in pursuing a policy of predatory pricing. What will happen to the prices set by the firm in the short run and in the long run?

  • Ashort run: rise / long run: rise
  • Bshort run: rise / long run: fall
  • Cshort run: fall / long run: rise
  • Dshort run: fall / long run: fall

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