Temporary price reductions intended to drive out competition are referred to as

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Temporary price reductions intended to drive out competition are called predatory pricing. This strategy involves setting prices below cost for a temporary period to force competitors out of the market or deter new entrants. Once competitors have been driven out, the predator can then raise prices to recoup losses and enjoy higher profits. Predatory pricing is illegal in most countries, as it is considered anticompetitive behavior.

Temporary Price Reductions Intended to Drive Out Competition Are Referred