Predatory pricing is
A)an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
B)the practice of charging a very low price for a product with the intent of driving competitors out of business.
C)the practice of charging different prices to different buyers for goods of like grade and quality.
D)a conspiracy among firms to set prices for a product or service.
E)a seller's requirement that the purchaser of one product also buy another product in the line.

Question

Quizplus · Accepted Answer

Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business. This allows the predator to gain monopoly power and raise prices in the long run.

Predatory Pricing Is