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:
A) predatory pricing
B) unfair trade practices
C) channel manipulation pricing
D) price fixing
E) price discrimination

Question

Quizplus · Accepted Answer

Microsoft's strategy of offering free Web-server software to gain a dominant market share and then raising the price above the market level is an example of predatory pricing, which is a strategy of pricing below cost to drive out competition and seize market share.

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