Mica Inc., an American computer manufacturing company, has priced its computers at a lower price than its competitors in Tasmedia, a country in Southeast Asia. Mica intends to raise the prices of its computers once the competition is gone. Given this information, it can be said that Mica is practicing a form of predatory pricing called _____.

Question

Quizplus · Accepted Answer

Mica Inc. is practicing dumping, which involves selling products in a foreign market at a price lower than the cost to produce them, with the intention of driving out competition and then raising prices.

Mica Inc, an American Computer Manufacturing Company, Has Priced Its Computers