In Canada,the difference between predatory pricing and competitive pricing is that
A) predatory pricing is always higher than competitive pricing.
B) predatory pricing adheres to the cost-benefit principle where competitive pricing does not.
C) predatory pricing is usually legal and competitive pricing is usually not.
D) competitive pricing is usually legal and predatory pricing is usually not.
E) most firms in Canada use competitive pricing,whereas firms in the U.S.tend to use predatory pricing.

Question

Quizplus · Accepted Answer

Competitive pricing is usually legal as it involves pricing products in accordance with market conditions and cost structures. Predatory pricing, on the other hand, is usually illegal as it involves intentionally pricing products below cost in order to drive competitors out of business and create a monopoly. Therefore, the main difference between the two is that competitive pricing is legal and based on market conditions, whereas predatory pricing is illegal and aims to eliminate competition.

In Canada,the Difference Between Predatory Pricing and Competitive Pricing Is