Which of these laws prohibits large firms from cutting below their costs in selected geographic areas so as to eliminate small, local competitors?
A) Loss-leader pricing
B) Predatory pricing
C) Unit pricing
D) Selling against the brand

Question

Quizplus · Accepted Answer

Predatory pricing is a strategy where large firms set prices below their costs in specific areas to drive out smaller competitors, which is prohibited by law.

Which of These Laws Prohibits Large Firms from Cutting Below