The use of skimming pricing is illegal because it discourages competition.

Question

Quizplus · Accepted Answer

Skimming pricing is not inherently illegal, but it can potentially be used to discourage competition. It involves setting a high initial price for a product or service in order to capitalize on the willingness of early adopters to pay more. As competitors enter the market and prices begin to fall, the skimming company may lower its prices as well. However, if the company uses the profits from the initial high prices to engage in predatory pricing or other anti-competitive tactics, that would be illegal.

The Use of Skimming Pricing Is Illegal Because It Discourages