Would a business ever sell its product for less than cost?

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A business could sell its products at a loss for a short duration of time if doing so could improve the chances of the business making higher profits in the future.

This can be the case if the business is a new entrant and there are already many competitors to deal with. The low prices could be used to make people aware about its products, use them and make them switch from the players already in the market.

This is not something that can be sustained over a long time and the business would soon have to increase the price of the products to a sustainable cost and...

(The entire section contains 2 answers and 313 words.)

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