Question

"what must be demonstrated to prove that a company engaged in predatory pricing?"

Answer 1

The price is below the sellers cost and it affects the competition in the market.

Step-by-step explanation:

Predatory pricing refers to establishing a price too low for your products to get customers or to take the competition out of the market. To be able to demonstrate that a company engaged in this practice, it should be demonstrated that the price affects not only the competitors but the whole market and that the price is below the seller's cost.

Answer 2

Predatory pricing is a dangerous and doubtful pricing strategy where a product or amenity is fixed at a very small price, proposing to drive opponents out of the market, or make barriers to access for potential new opponents. The company expressively raised its prices after its competitors were forced out of the market. And the company purposely set its prices below its average variable costs. This can prove that a business is engaged in predatory pricing.