The Crusher Corp.charges very low prices to drive its only competitor out of business.This is an example of ________ pricing.
A) demand-based
B) brand
C) predatory
D) penetration
E) loss leader

Question

Quizplus · Accepted Answer

Predatory pricing is a strategy used by a dominant firm to drive its competitors out of the market by setting low prices that are difficult for competitors to match. The ultimate goal is to gain a monopoly over the market and then increase prices once the competition is eliminated. The scenario described in the question is an example of predatory pricing.