Drober Consulting is a large software service provider. The company has the largest market share in the industry. In order to restrain the smaller competitors in the market, the company sells some of its products at very low prices. This is an example of ________ pricing.
A) penetration
B) multipoint
C) predatory
D) experience curve

Question

Quizplus · Accepted Answer

Predatory pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market. Once the competitors have left the market, the firm can raise prices and enjoy high profits. Drober Consulting is using predatory pricing here.

Drober Consulting Is a Large Software Service Provider