Question

short-term price reductions that can be used to retaliate against a competitor's actions like introducing a new product are called blank .

Answer 1

Predatory pricing is a short-term price reduction strategy used to retaliate against a competitor's actions, such as introducing a new product.

Step-by-step explanation:

Short-term price reductions that can be used to retaliate against a competitor's actions, such as introducing a new product, are called predatory pricing. Predatory pricing is a strategy where an existing firm uses temporary price cuts to discourage new competition from entering the market. This practice is a violation of U.S. antitrust law, but it can be difficult to prove.

Answer 2

Short-term price reductions used to combat competitors introducing new products are called predatory pricing, which is a competitive strategy that may violate U.S. antitrust law but is difficult to prove.

Step-by-step explanation:

Short-term price reductions that can be used to retaliate against a competitor's actions like introducing a new product are referred to as predatory pricing. This strategy involves an existing firm implementing sharp but temporary price cuts to discourage new competition from entering the market. It's a way to create barriers to entry and can intimidate potential competition. However, this practice is considered a violation of U.S. antitrust law. While predatory pricing can be an effective competitive strategy, proving it as a violation is often a complicated legal challenge.