When Microsoft introduced its Windows NT network operating system,it gave buyers free Web server software.At the same time,Netscape was trying to sell similar Web server software for $4,999.Once Microsoft got a lion's share of the market,and Netscape's market share declined substantially,Microsoft began charging above-market price for its Web server software.Many people thought Microsoft was guilty of which of the following?
A) unfair trade practices
B) price discrimination
C) price fixing
D) predatory pricing

Question

Quizplus · Accepted Answer

Microsoft's strategy of initially offering free Web server software to undermine Netscape's market share, then charging above-market prices once a dominant position was achieved, is an example of predatory pricing. This tactic is used to eliminate or cripple competition, after which prices can be raised without the constraint of competitive pricing.

When Microsoft Introduced Its Windows NT Network Operating System,it Gave