Bob Biltmore owns dozens of very successful print shops throughout the Prairie Provinces.Biltmore's shops specialize in low-cost black and white copies and feature user-friendly machines consumers can easily operate.In recent months,Biltmore has noticed many more competitors in the areas where his stores are located.In an attempt to eliminate the competition,Biltmore has decided to charge a very low price for his black and white copies,a price so low his competitors will be forced out of business.After the competition has been driven out,Biltmore plans to raise the price of his copies.Biltmore is planning to engage in the illegal practice of:
A)price fixing.
B)price inflation.
C)predatory pricing.
D)competitive pricing.

Question

Quizplus · Accepted Answer

Bob Biltmore is engaging in predatory pricing which involves selling a product at an extremely low price in order to drive competitors out of business, and then raising prices once competitors are eliminated. This practice is illegal as it violates antitrust laws. Price fixing involves colluding with competitors to set prices, price inflation involves intentionally raising prices, and competitive pricing involves setting prices based on market competition.

Bob Biltmore Owns Dozens of Very Successful Print Shops Throughout