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Biggest rival goes bankrupt and exits the market

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Reference no: EM131447761

Suppose Firm A sets a price below average variable cost for two years. After the second year, Firm A's biggest rival goes bankrupt and exits the market. In the third year, Firm A raises prices significantly. Firm A is practicing:

  • average variable pricing.
  • inversion pricing.
  • competitive pricing.
  • collusion pricing.
  • predatory pricing.

Reference no: EM131447761

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