Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most likely guilty of ________.
A) market skimming
B) price fixing
C) deceptive pricing
D) price collusion
E) predatory pricing

Question

Quizplus · Accepted Answer

Savings for You is engaging in predatory pricing, which involves setting prices so low that it drives competitors out of business. This violates antitrust laws and is considered anti-competitive behavior.

Savings for You, a Discount Retail Chain, Is Highly Competitive