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treetreee treetreee
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4 years ago
What is the difference between price discrimination and predatory pricing?
Textbook 
Macroeconomics: Principles, Applications and Tools

Macroeconomics: Principles, Applications and Tools


Edition: 7th
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4 years ago
Price discrimination occurs when a firm divides consumers into two or more groups and charges each group a different price for the same product. Predatory pricing occurs when a firm decreases the price of a product to drive a rival out of business. Once the rival is gone, the firm increases the price of the product.
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