The practice of firms temporarily reducing prices in order to eliminate competition is called:
A) competitive pricing.
B) predatory pricing.
C) discount pricing.
D) strategic pricing.

Question

Quizplus · Accepted Answer

Predatory pricing is the practice of temporarily reducing prices in order to eliminate competition. This can be seen as anti-competitive behavior and is often illegal. Competitive pricing, discount pricing, and strategic pricing are all different pricing strategies that do not involve intentionally driving out competitors through price manipulation.

The Practice of Firms Temporarily Reducing Prices in Order to Eliminate