Predatory pricing refers to
A)the practice of charging a very low price for a product with the intent of driving competitors out of business.
B)a conspiracy among firms to set prices for a product.
C)using price differentials when charging different prices on the basis of race, religion, or ethnic affiliation.
D)using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.
E)controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price

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 is done by setting a price that is lower than the cost of production, thus making it impossible for other firms to compete.

Predatory Pricing Refers to