Predatory pricing:
A) is an aggressive business move to maintain market power.
B) was used by DeBeers to maintain control over the diamond market.
C) is when a firm intimidates others to maintain the high prices the largest firms set.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

Predatory pricing is a strategy used by a firm to maintain or increase its market power by pricing its goods or services lower than its competitors. This can be seen as an aggressive move to drive out competitors and ultimately gain control over the market.

Predatory Pricing