Predatory pricing is:
A)the practice of charging a very low price for a product with the intent of driving competitors out of business.
B)a conspiracy among firms to set prices for a product or service.
C)the practice of charging different prices to different buyers for goods of like grade and quality.
D)an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.

Question

Quizplus · Accepted Answer

Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business. This is done in order to create a monopoly in the market, where the company can then raise prices to higher levels without fear of competition.

Predatory Pricing Is