Suppose a country allows millions of extra barrels of oil into the market to push prices downward.This would squeeze smaller oil producers out of the market and expand the country's own market share.It would also help limit future production, which ultimately would help support higher prices.This act could be termed as:

Question

Quizplus · Accepted Answer

This act is termed as predatory pricing, where a country deliberately lowers prices to drive competitors out of the market, with the intention of raising prices later once competition is reduced.

Suppose a Country Allows Millions of Extra Barrels of Oil