Spa Selectiva Company makes and sells beauty salon supplies. By selling its product at prices substantially below the normal cost of production, Spa Selectiva hopes to drive its competitors from the market. This is

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Predatory pricing refers to the practice of pricing products below the cost of production with the intention of driving competitors out of the market. This can lead to a monopoly or dominant market position for the company engaging in this practice. Therefore, Spa Selectiva attempting to drive its competitors from the market by selling its products at prices below the cost of production is an example of predatory pricing.

Spa Selectiva Company Makes and Sells Beauty Salon Supplies