(Answered) Suppose firm a sets a price below average variable cost for

Management Studies

Suppose Firm A sets a price below average variable cost for two years. After the second year, Firm A's biggest rival goes bankrupt and exits the market. In the third year, Firm A raises prices significantly. Firm A is practicing:

average variable pricing.
inversion pricing.
competitive pricing.
collusion pricing.
predatory pricing.

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