Which of the following would be considered predatory pricing?
A) a company that prices its products below cost to get rid of a surplus
B) a company that prices below cost to drive out competitors
C) a company that offers a volume discount
D) a company that offers the suggested retail price on the manufacturer's package
E) a company that offers real-time pricing online

Question

Quizplus · Accepted Answer

Predatory pricing involves intentionally setting prices below cost to drive out competitors and achieve a dominant market position. Option A may involve a temporary loss, but it does not necessarily aim to eliminate competition. Option C is a common pricing strategy that does not involve pricing below cost. Option D involves following the standard retail pricing set by the manufacturer. Option E refers to dynamic pricing based on real-time market conditions, which is not necessarily predatory in nature.

Which of the Following Would Be Considered Predatory Pricing