Predatory pricing refers to selling
A) above cost in order to make a profit.
B) below cost in order to take a loss.
C) below cost in order to drive competitors out of business.
D) above cost in order to ensure product quality.
E) above cost in order to drive competitors out of business

Question

Quizplus · Accepted Answer

Predatory pricing refers to deliberately selling products or services at a price that is below the cost of production with the intent of driving competitors out of business. The goal is to create a monopoly in the market by eliminating competition. By selling at a loss for a period of time, the predator hopes to recoup the losses once the competition is eliminated, and prices can be raised.

Predatory Pricing Refers to Selling