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

Question

Quizplus · Accepted Answer

Predatory pricing is a strategy in which a company lowers its prices significantly to drive competitors out of business, before raising prices to a much higher level once the competition is eliminated. The goal is to ultimately establish a monopoly in the market. This practice is illegal in many countries, including the United States, because it is seen as anti-competitive and harms consumers.

The Practice of Changing a Very Low Price for a Product