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When a firm pursues a predatory pricing strategy, it does so to hire more staff to lower unemployment. to increase supply to benefit consumers. to maximize profits in the long run. to discourage short run competition.

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jayilych4real

The main purpose why firms pursue a predatory pricing strategy is:

  • to discourage short run competition.

Who is Predatory Pricing Strategy?

This has to do with the intentional act of firms to set their prices very low and also sell below AVC to drive out competitors.

With this in mind, we can see that with this type of business strategy, firms are able to suffer losses with the aim of discouraging short run competition by selling far lower than others.

Read more about predatory pricing strategy here:
https://brainly.com/question/7452266

There are different pricing strategy, when a firm pursues a predatory pricing strategy it does so to maximize profits in the long run.

What is predatory pricing strategy?

Pricing strategy are use by business to get or attract customers.

There are various strategy to uses depending on the goods or services to render and the survey outcome that has been carried out prior to business execution.

Therefore, When a firm pursues a predatory pricing strategy it does so to maximize profits in the long run.

Learn more on maximizing profit here,

https://brainly.com/question/24635381

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