Answer
false
Work Step by Step
Predatory pricing is not beneficial.
Predatory pricing, while theoretically a strategy to eliminate competition and establish monopoly power, is generally ineffective and unsustainable in practice. It requires a firm to incur significant short-term losses with the hope of long-term gains, but this approach is often undermined by legal restrictions, market dynamics, and the potential for new competitors to enter once prices rise again. As a result, predatory pricing is not considered a practical or reliable method for securing and maintaining monopoly status.
