Predatory pricing occurs when a firm sets _____.
A)prices below their competitors' prices
B)prices so low that competitors are driven out of the market
C)different prices for different customers
D)uniform prices

Question

Quizplus · Accepted Answer

Predatory pricing occurs when a firm sets prices so low that competitors are driven out of the market. This strategy is used to eliminate competition and gain a monopoly position in the market. Prices below competitors' prices may not necessarily be predatory if they are based on cost advantages or other legitimate factors. Choice C and D are not related to predatory pricing.

Predatory Pricing Occurs When a Firm Sets _____