How might distinguish predatory from nonpredatory pricing


Problem

1. In some regulated industries, regulatory agencies prevented prices from falling, and as a result many firms opened for business in those industries. In your opinion, is this kind of regulation competitive or anticompetitive? Is it a good idea or a bad one?

2. Regulators are highly concerned about the prevention of "predatory pricing." The U.S. Court of Appeals has, however, noted that "the term probably does not have a well-defined meaning, but it certainly bears a sinister connotation." How might one distinguish "predatory" from "nonpredatory" pricing? What would you do about it?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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