The use of price as a competitive weapon to drive weaker competitors out of a national market is called:
A) pillage pricing
B) predatory pricing
C) forward pricing
D) competitive pricing
E) war pricing

Question

Quizplus · Accepted Answer

Predatory pricing is the use of low pricing strategy to eliminate weaker competitors from the market. This is a common strategy employed by large corporations with the intent of monopolizing the market. The low pricing strategy is used to drive smaller competitors out, and once they're out, the dominant company increases prices again.

The Use of Price as a Competitive Weapon to Drive