Which of the following would be considered predatory pricing?
A) a company which prices it products below cost to get rid of a surplus
B) a company which prices below cost to drive out competitors
C) a company which offers a volume discount
D) a company which offers the suggested retail price on the manufacturer's package
E) a company which offers real-time pricing online

Question

Quizplus · Accepted Answer

Predatory pricing occurs when a company sets its prices below cost with the intention of driving out competitors. This can be harmful to competition in the long run and is therefore considered an anticompetitive practice. Options A, C, D, and E do not fit the definition of predatory pricing.

Which of the Following Would Be Considered Predatory Pricing