Bob Biltmore owns dozens of very successful print shops throughout 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 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.
E)price flighting.

Question

Quizplus · Accepted Answer

Bob Biltmore is engaging in predatory pricing, which is the practice of selling a product at a very low price with the intention of driving competitors out of business. Once the competition has been eliminated, Biltmore plans to raise his prices. This practice is illegal under antitrust laws because it harms consumers by limiting competition and can lead to a monopoly.

Bob Biltmore Owns Dozens of Very Successful Print Shops Throughout