Charging a very low price for a product with the intent of driving competitors out of business is referred to as _____.
A) cannibalization
B) price fixing
C) predatory pricing
D) deceptive pricing

Question

Charging a very low price for a product with the intent of driving competitors out of business is referred to as _____.
A) cannibalization
B) price fixing
C) predatory pricing
D) deceptive pricing

Quizplus · Accepted Answer

Predatory pricing refers to charging an extremely low price for a product with the intention of driving out competition. This strategy is often used by dominant firms to eliminate smaller competitors and gain a larger market share. It is illegal in most countries as it violates fair competition laws.

Charging a Very Low Price for a Product with the Intent