Bob Biltmore owns dozens of very successful print shops throughout the Prairie Provinces. Biltmore's shops specialize in low-cost black and white copies and feature user-friendly machines consumers can easily operate. In recent months, Biltmore has noticed many more competitors in the areas where his stores are located. In an attempt to eliminate the competition, Biltmore has decided to charge a very low price for his black and white copies, a price so low his competitors will be forced out of business. After the competition has been driven out, Biltmore plans to raise the price of his copies. Biltmore is planning to engage in the illegal practice of:
A)price inflation.
B)competitive pricing.
C)predatory pricing.
D)price fixing.

Question

Quizplus · Accepted Answer

Predatory pricing is the illegal practice of setting very low prices in order to drive competitors out of business and then raising prices once the competition has been eliminated. This is what Biltmore plans to do, making choice C the correct answer.

Bob Biltmore Owns Dozens of Very Successful Print Shops Throughout