The illegal practice of selling below costs with the intention of punishing a competitor by driving a competitor out of business is known as ________ pricing.
A)penetration
B)predatory
C)dynamic
D)deep discount
E)skimming

Question

Quizplus · Accepted Answer

Predatory pricing is the illegal practice of selling goods or services at a loss with the intention of driving competitors out of business, which eventually allows the seller to raise prices and make up for the losses incurred. This type of pricing is considered anticompetitive and in violation of fair competition laws.

The Illegal Practice of Selling Below Costs with the Intention