Penny Bank,a discount retail chain,is highly competitive.When entering a new market,Penny Bank often cuts prices so deeply that it sells below costs,effectively pushing smaller retail stores with less purchasing power out of the market.Penny Bank is at risk of being accused of ________.
A)market skimming
B)price-fixing
C)predatory pricing
D)deceptive pricing
E)resale price maintenance

Question

Quizplus · Accepted Answer

Penny Bank is engaging in predatory pricing, which involves setting prices so low that smaller competitors cannot compete and are forced out of the market. This practice is illegal as it creates a monopoly and harms competition.

Penny Bank,a Discount Retail Chain,is Highly Competitive