The use of price as a competitive weapon to drive weaker competitors out of a national market is known as _____.
A) multipoint pricing
B) predatory pricing
C) leader pricing
D) price discrimination
E) price skimming

Question

Quizplus · Accepted Answer

Predatory pricing is the strategy of setting prices low enough to eliminate competition, with the intention of raising prices later to achieve higher profits. This strategy can be used to drive weaker competitors out of a national market.

The Use of Price as a Competitive Weapon to Drive