Temporary price reductions intended to alter market shares or drive out competition are referred to as
A)Predatory pricing.
B)Price-fixing.
C)Price leadership.
D)Retaliation.

Question

Quizplus · Accepted Answer

Temporary price reductions intended to alter market shares or drive out competition are considered a form of predatory pricing. This practice involves setting prices at very low levels to prevent competitors from being able to compete effectively, and then once competitors have left the market, raising prices back to normal levels or above. This type of behavior is considered anti-competitive and is illegal in most markets.

Temporary Price Reductions Intended to Alter Market Shares or Drive