Why firms intentionally lose money on certain goods

 

 

 

 

Firms, such as Walmart, have used a strategy where the price (marginal revenue) of certain items are intentionally set below the average total cost of production, such as grocery items. Why would firms intentionally lose money on certain goods? Do you think this strategy works? Why, or why not? Would (or does) it work on you?

 

 

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Why firms intentionally lose money on certain goods
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