Midway Appliance Group has set very low prices for its products in an attempt to drive its competitor, Home Supply Corp., out of business. This is known as monopolistic pricing.

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Monopolistic pricing refers to a situation where a single seller of a good or service is able to set prices at any level it desires because there are no close substitutes for that good or service. In the scenario described, Midway Appliance Group is engaging in predatory pricing, which involves setting prices below cost in the short term to drive competitors out of business and then raising prices once competition is eliminated.

Midway Appliance Group Has Set Very Low Prices for Its