When Lofonift Inc.introduced its flagship MP3 player,it captured the market by offering the product at a very low price.This gradually forced many of its competitors out of business.Once its competitors were out of business,Lofonift Inc.raised the price.In this scenario,Lofonift Inc.most likely indulged in _____.
A) predatory pricing
B) price discrimination
C) status quo pricing
D) price fixing

Question

Quizplus · Accepted Answer

Lofonift Inc. engaged in predatory pricing, which involves setting prices low to eliminate competition and then raising prices once competitors are out of the market.