There are two shoe stores in a small town. Store A is selling a pair of running shoes for $39.50. If it costs Store A $40 to order this pair of shoes from the factory, then what is Store A doing?

A. This store has high market power.

B. This store is price fixing.

C. This store is practicing deregulation.

D. This store is practicing predatory pricing.

Question

Jazlene Burton

English

26 March, 20:15

There are two shoe stores in a small town. Store A is selling a pair of running shoes for $39.50. If it costs Store A $40 to order this pair of shoes from the factory, then what is Store A doing?

A. This store has high market power.

B. This store is price fixing.

C. This store is practicing deregulation.

D. This store is practicing predatory pricing.

+4

Answers (2)

Know the Answer?

Kolten Buck · Answer 1

hi elena its bre

Practicing predatory pricing.

Predatory pricing is the price of goods or services at a low level where other supplies can not compete. If suppliers are unable to compete they will eventually leave the market due to the inability to sell their product.

Juliana Gallegos · Answer 2

Juliana Gallegos 26 March, 20:31

0

Answer: Predatory Pricing