A major airline sells an aggressively low-priced ticket compared to a new low-fare airline which is trying to enter the market.The airline may be accused of engaging in the unethical practice of
A) leader pricing.
B) price skimming.
C) price fixing.
D) predatory pricing.
E) deceptive reference prices.

Question

Quizplus · Accepted Answer

The airline may be accused of engaging in the unethical practice of predatory pricing, which involves setting very low prices to drive competitors out of business or prevent new entrants from entering the market. This practice is harmful to both competitors and consumers in the long term.

A Major Airline Sells an Aggressively Low-Priced Ticket Compared to a New