Setting prices below cost for the purpose of injuring competitors and eliminating competition is
A)predatory pricing.
B)target pricing.
C)price discrimination.
D)price gouging.

Question

Quizplus · Accepted Answer

Predatory pricing is the practice of setting prices below cost to drive competitors out of the market. This is not a sustainable pricing strategy, as it can harm the industry and result in higher prices for consumers in the long run. It is important for companies to set prices based on market demand, costs, and competition, rather than using unethical tactics to eliminate competitors.

Setting Prices Below Cost for the Purpose of Injuring Competitors