this likable, predatory pricing. Predatory pricing is simply the cutting down of prices. When a new firm interests a market. For example, let's say we're looking at a car company, and let's assume that GMC is the only car company in the world. Okay, um imitated a new a new firm wants to enter this market and producer on Carson solidity consumers well, GMC, since being the only firm in being rather large, is going to be able to decrease their prices toe a level where the new firm might not be able to compete. That's just an example of predatory pricing, But it's actually really hard to know why a firm might be cutting prices. Because again, if we have competition, we do expect prices to go down. So when exactly do we draw the line and say, Well, this is predatory pricing. Some economy ist can claim that if you charge her price below your average variable costs, which technically is a shutdown price because you're making losses, then let's go see their predatory pricing. And why would a firm do that? Well, affirm? I decide to incur some losses right now if it can keep making positive profits in the future. So it's kind of like saying, Well, I don't want this firm to enter my market and take my profits so I will incur a loss to make sure that I kicked them out to make sure they go bankrupt. Um, but even then, even if we have that cut off, it is really hard to know. Affirms average variable costs. We're not really sure whether variable costs as we don't know what they're fixed costs are. So actually pinpointing predatory pricing practices is rather difficult in the real world.