Bob Biltmore owns dozens of successful print shops in the Midwest. 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 more competition near his stores. 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 to close. After that, Biltmore plans to raise copy prices. He plans to engage in the illegal and unethical practice of
A) price fixing.
B) price inflation.
C) deceptive pricing.
D) competitive pricing.
E) predatory pricing.

Question

Quizplus · Accepted Answer

Biltmore's strategy of setting very low prices to drive competitors out of business and then raising prices is known as predatory pricing, which is illegal and unethical.

Bob Biltmore Owns Dozens of Successful Print Shops in the Midwest