Question: 1 Consider the following statement and explain if it is true or false: In practice, firms use predatory pricing rather than limit pricing because limit

1 Consider the following statement and explain if it is true or false: In practice, firms use predatory pricing rather than limit pricing because limit pricing is not a credible entry deterrence threat.

2 For a firm to achieve economies of scope it must be vertically integrated. Is this statement true or false? Explain your answer and give an example of a firm with broad product scope.

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