Predatory pricing involves having the ability to set prices so excessively high that only the highest income consumers can afford them.

Question

Quizplus · Accepted Answer

Predatory pricing involves selling products or services at prices so low that it drives competitors out of the market, allowing the predator to monopolize the market and eventually raise prices. It does not involve setting prices excessively high.

Predatory Pricing Involves Having the Ability to Set Prices So