Which of the following describes the practice of setting the price of a product at less than cost to take over a market and then to raise the price?
A)Dumping
B)Price Skimming
C)Penetrating Pricing
D)Predatory Pricing

Question

Quizplus · Accepted Answer

Predatory pricing is the practice of setting the price of a product or service so low that it drives competitors out of business or prevents new competitors from entering the market. Once the competition has been eliminated, the company can raise its prices to more profitable levels. This is illegal in many countries, including the United States, under antitrust laws.

Which of the Following Describes the Practice of Setting the Price