Final answer:
The statement is false; market skimming involves setting high initial prices, not low. Predatory pricing is the practice of temporary price cuts to eliminate competitors, and it can be a barrier to entry alongside trademarks and trade secrets.
Step-by-step explanation:
The statement that "Market skimming is a strategy that uses low prices as a competitive weapon to gain market position" is False. Market skimming typically involves setting higher prices initially to target customers willing to pay more. On the other hand, predatory pricing is a practice where an existing firm uses sharp, temporary price cuts to discourage new competition, potentially violating U.S. antitrust law. These price cuts are designed to drive out new entrants and then allow the firm to increase prices again.
Barriers to entry, such as trademarks and trade secrets, can be utilized by firms to maintain a monopoly or dominant position by preventing new competitors from entering the market. Trademarks protect the identifying symbols or names of goods, and trade secrets are methods of production kept confidential by the firm. These mechanisms, along with predatory pricing, are crucial in understanding how monopolies form and maintain their market power.