Which of the following is not a true statement regarding predatory pricing. A. Consumers are harmed only if below-cost pricing allows a dominant competitor to knock its rivals out of the market and then raise prices to above-market levels for a substantial time.
B. A firm's independent decision to reduce prices to a level below its own costs does not necessarily injure competition, and, in fact, may simply reflect particularly vigorous competition.
C. Instances of a large firm using low prices to drive smaller competitors out of the market in hopes of raising prices after they leave are quite common.
D. A predatory pricing strategy can only be successful if the short-run losses from pricing below cost will be made up for by much higher prices over a longer period of time after competitors leave the market.