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Predatory Pricing

Predatory pricing is the practice of setting prices for goods or services at a level that is below the cost of production, with the intention of driving competitors out of the market. Once the competition is eliminated, the predator can then raise prices to a more profitable level.

Predatory pricing is considered to be anticompetitive behavior and is often illegal. It can be difficult to prove that a company is engaging in predatory pricing, as it requires demonstrating that the company's actions were motivated by the intention to eliminate competition and not by legitimate business considerations.

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