Question

1. Predatory pricing is a violation of U.S. antitrust law, ___________________________."

		which is why it is never done.
		but it can be deemed okay if the U.S. believes it promotes innovation.
		which is why it is mainly done overseas.
		but it is difficult to prove.

2. Which of the following is not a condition for perfect competition to exist:

		There are many firms produce identical products.
		Both sellers and buyers have all relevant information to make rational decisions about the product being bought and sold.
		Firms can enter and leave the market without any restrictions.
		"Firms are price takers, but buyers are price givers."

Answer 1

1. Option 4

Predatory pricing is an illegal act to establish monopoly in the market by reducing the market.

2. Option 4

Individual firm is a price taker based on the market demand and supply forces.