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destructive competition

destructive competition in Culture

destructive competition definition

Competition that forces several producers out of the market. Destructive competition usually occurs when there are so many producers of a product that prices are driven down to the point where no one makes a profit. It can also happen if a single producer is significantly wealthier than other producers and can afford to cut prices drastically until the other producers are driven out of business.

The New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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