If dominating companies in an industry cut prices until competitors leave the market,and then raise prices again,they are engaging in:
A) destructive competition.
B) pure competition.
C) monopolistic competition.
D) perfect competition.

Question

Quizplus · Accepted Answer

This practice is known as destructive competition or predatory pricing. It involves dominant firms setting prices low enough to drive competitors out of the market, after which they may raise prices again due to reduced competition.

If Dominating Companies in an Industry Cut Prices Until Competitors