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Do you think that predatory pricing laws should be amended to exclude prescription drugs?

Do you think that predatory pricing laws should be amended to exclude prescription drugs?

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Answer #1

In predatory pricing, a firm charges a very low price initially to drive out competition in the market and it can raise the price once the competitors are out of the industry. I think predatory pricing laws should not be amended to exclude prescription drugs. Such amendment would result in monopoly as firms can increase the price and control quantity after driving out the competitors.

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