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Simple English definitions for legal terms

long-run incremental cost

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A quick definition of long-run incremental cost:

Long-run incremental cost is a way to figure out if a company is selling a product at a price that is too low to drive competitors out of business. It looks at all the costs that would not be there if the product was not being sold over a few years. This is different from just looking at the cost of making the product right now. Long-run incremental cost includes some costs that do not change in the short term but can change over a longer period of time depending on whether the product is being sold or not. It is abbreviated as LRIC and is used in antitrust cases to determine if a company is engaging in predatory pricing.

A more thorough explanation:

Long-run incremental cost (LRIC) is a cost threshold used in antitrust law to determine if predatory pricing has occurred. It includes all costs that would not be incurred over a period of several years if a particular product was not offered. This cost differs from average variable cost because it includes some costs that do not vary in the short run but that do vary over a longer period, depending on whether a particular product is offered.

For example, let's say a company wants to enter a new market and decides to offer a product at a very low price to drive out competitors. The company's average variable cost for producing the product is $10, but its long-run incremental cost is $15. This means that if the company were to stop offering the product, it would still have to pay $15 in costs over a period of several years. Therefore, if the company sells the product for less than $15, it is engaging in predatory pricing.

Another example could be a company that wants to expand its business by acquiring a smaller competitor. The antitrust authorities may use LRIC to determine if the acquisition would result in the larger company having too much market power and being able to engage in predatory pricing.

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triplethread
13:28
mamas getting denied
JumpySubsequentDolphin
13:29
the bergdorf on 5th Ave in NYC is so
JumpySubsequentDolphin
13:29
it feels like home
Dkk
13:29
I'm at your mommas house rn: https://x.com/Mansavelli_/status/1648073454665572352
triplethread
13:29
im addicted to reacting to all of the decisions
triplethread
13:29
with the emojis
HopefullyInLawSchool
13:29
I shop at Joe
HopefullyInLawSchool
13:29
Joe's
glovediedthisishismom
13:30
i shop at tawget
glovediedthisishismom
13:30
im dawk gawthic maga
triplethread
13:30
i shop at giant eagle
ForDizzyDJoy
13:31
How did i miss Fordham and American’s wave and I applied in september 🙃
13:33
Lol UC Davis took me of ED and put me in RD
13:34
surprised I didnt get straight denied
HopefullyInLawSchool
13:34
they emailed you/
HopefullyInLawSchool
13:34
?
13:35
@HopefullyInLawSchool: Yea, I just got it
i just want a cornell ii :(
13:37
yak you will be fucking shit up at cornell this time next year dw
i love u
13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
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