A major airline sells an aggressively low priced ticket compared to a new low-fare airline,which is trying to enter the market.The airline may be accused of engaging in the unethical practice of
A) predatory pricing.
B) price fixing.
C) leader pricing.
D) price skimming.
E) deceptive reference prices.

Question

Quizplus · Accepted Answer

Predatory pricing is a pricing strategy in which a firm charges very low prices, even below its cost of production, to drive out competitors from the market. In this scenario, the major airline is selling aggressively low-priced tickets to prevent the new low-fare airline from entering the market. This can be considered unethical as it harms the competition and limits consumer choice.

A Major Airline Sells an Aggressively Low Priced Ticket Compared