When entering a new market,a highly competitive discount retail chain often cuts prices so deeply that it sells at below its cost,effectively pushing smaller companies with less purchasing power out of the market.The firm is at risk of being accused of ________.
A)market skimming
B)price-fixing
C)predatory pricing
D)deceptive pricing
E)price confusion

Question

Quizplus · Accepted Answer

The firm is engaging in predatory pricing, which is a strategy used to drive competitors out of the market by selling products at prices lower than their costs. This practice is often seen as anticompetitive and can result in accusations of unfair competition.

When Entering a New Market,a Highly Competitive Discount Retail Chain