Predatory pricing occurs when a firm sets a ________ price to drive competitors out of business with the intention of then setting a ________ price.
A) monopoly; high
B) monopoly; low
C) low; monopoly
D) low; low
E) high; monopoly

Question

Quizplus · Accepted Answer

Predatory pricing strategy involves initially setting prices low enough to eliminate or undermine competitors, and once the competition is reduced or eliminated, the firm then has the ability to set higher, monopoly-like prices.

Predatory Pricing Occurs When a Firm Sets a ________ Price