________ refers to selling below cost with the intention of destroying competition.
A) Bid rigging
B) Loss-leader pricing
C) Predatory pricing
D) Price discrimination
E) Price penetration

Question

Quizplus · Accepted Answer

Predatory pricing refers to selling products below cost with the intention of driving competitors out of the market. This creates barriers to entry for new competitors and allows the firm to establish a monopolistic or dominant market position in the long term. Bid rigging involves collusion among firms to manipulate the bidding process, price discrimination involves charging different prices to different consumers based on their willingness to pay, and price penetration involves setting low prices in order to gain market share in the short term. Loss-leader pricing involves intentionally offering a few products below cost in order to attract customers to purchase additional, more profitable products.

________ Refers to Selling Below Cost with the Intention of Destroying