When LofoniftInc.introduced its flagship product,an MP3 player,it captured the MP3 player market by offering its product at the lowest price in the market.This forced many of its competitors out of business.In this scenario,LofoniftInc.most likelyindulgedin _____.
A)predatory pricing
B)price discrimination
C)status quo pricing
D)price fixing

Question

​When LofoniftInc.introduced its flagship product,an MP3 player,it captured the MP3 player market by offering its product at the lowest price in the market.This forced many of its competitors out of business.In this scenario,LofoniftInc.most likelyindulgedin _____.
A)predatory pricing
B)​price discrimination
C)​status quo pricing
D)price fixing

Quizplus · Accepted Answer

Predatory pricing is the act of setting prices low enough to drive competitors out of the market. In this scenario, Lofonift Inc. introduced its MP3 player at the lowest price, which forced many of its competitors out of business. This suggests that Lofonift may have indulged in predatory pricing. Price discrimination refers to charging different prices to different customers. Status quo pricing is maintaining the current price of a product, while price fixing involves conspiring with other companies to fix prices at a certain level.

​When LofoniftInc

When LofoniftInc