When a seller charges different prices for the same quantity and quality of products to two different customers who are in competition with each other, it is guilty of predatory pricing.

Question

Quizplus · Accepted Answer

This practice is known as price discrimination, not predatory pricing. Predatory pricing involves selling a product below cost to eliminate competitors, while price discrimination involves charging different prices to different customers for the same product or service.

When a Seller Charges Different Prices for the Same Quantity