Predatory pricing is:
A)temporarily slashing prices below cost to force competitors out of the market.
B)an aggressive business move to maintain market power.
C)used to discourage competitors.
D)All of these are true.

Question

Quizplus · Accepted Answer

Predatory pricing encompasses all of these aspects: it involves temporarily reducing prices below cost to eliminate competition, is an aggressive strategy to maintain or increase market power, and is used as a tactic to discourage new or existing competitors from entering or staying in the market.

Predatory Pricing Is