practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as
A) price fixing.
B) predatory pricing.
C) price discrimination.
D) deceptive pricing.
E) geographical pricing.

Question

Quizplus · Accepted Answer

Predatory pricing is the practice of charging a very low price for a product with the intention of driving competitors out of business. It is illegal in most countries because it is considered anti-competitive behavior. Price fixing is an agreement between competitors to set prices at a certain level, price discrimination is charging different prices to different customers, deceptive pricing is misleading customers about the price, and geographical pricing is charging different prices based on the location of the customer.

Practice of Charging a Very Low Price for a Product