A country allows millions of extra barrels of oil into the market to push prices downward.This squeezes smaller oil producers out of the market and expand the country's own market share.This act could be termed:
A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question

Quizplus · Accepted Answer

This act is an example of predatory pricing, which occurs when a dominant firm intentionally sells products or services at a low price with the aim of driving smaller competitors out of the market. By flooding the market with cheap oil, the dominant country can drive down prices and make it difficult for smaller oil producers to compete, ultimately expanding its own market share.

A Country Allows Millions of Extra Barrels of Oil into the Market