The practice of setting prices deliberately below average variable costs in order to put a rival out of business is known as:

Question

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Predatory pricing refers to the practice of setting prices below average variable costs with the aim of forcing a competitor out of the market. The intent of predatory pricing is to create a monopoly or eliminate competition in the market. It is generally considered to be an unfair and illegal business practice.

The Practice of Setting Prices Deliberately Below Average Variable Costs