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Describe Pricing Decisions

The attached Washington Post article describes Amazon.com's ability to buck the dot-com trend and become profitable.

The following statement is contained in the article-

Some analysts have criticized Amazon's aggressive pricing, arguing that it unnecessarily eats into the bottom line. Amazon, they said, should abandon the approach because the company has no real competition.

A little reflection shows that this statement is off-target. Provide an argument demonstrating why it is incorrect.

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