Google gives away services for free in order to attract users it can then offer to its advertising clients. However, by giving away these services, Google looks as though they are trying to drive other companies out of business through a practice called _________________, offering goods and services at prices that don't cover the costs of producing these services.
A) Price busting
B) Discounting
C) Predatory pricing
D) Cornering the market

Question

Quizplus · Accepted Answer

Predatory pricing is when a company offers goods or services at prices that are below the cost of production in order to drive competitors out of business. This can be seen as anti-competitive behavior and is often illegal. While Google's free services may not technically be below the cost of production, they can still be seen as predatory pricing since they are offered at no cost to the user in order to attract them away from competitors.

Google Gives Away Services for Free in Order to Attract