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One technique is referred to as predatory pricing, where a business makes use of the threat of sharp price cuts to discourage Opposition. Predatory pricing is often a violation of U.S. antitrust regulation, but it's tough to read more show.
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Enjoy this video clip for an summary about monopolies, which includes their barriers to entry and why the are problematic for marketplace economy.
A small firm trying to deliver these exact same number of units need to divide overhead costs by its rather little variety of models, generating Each and every unit incredibly high-priced to generate.
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