Raise prices to monopoly levels when it had no competition

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One of the concerns about Walmart's entry into the grocery business in the latter part of the 1990s was that it would set low prices, drive little stores out of business, and then raise prices to monopoly levels when it had no competition. That hasn't happened but that doesn't mean it couldn't happen. Why do you think it hasn't happened yet? Under what conditions, and in what industries, might such a strategy work?

Reference no: EM131245392

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