Which of the following would be considered predatory pricing?
A) a company that prices it products below cost to get rid of a surplus
B) a company that prices below cost to drive out competitors
C) a company that offers a volume discount
D) a company that offers the suggested retail price on the manufacturer's package
E) a company that offers real-time pricing online

Question

Quizplus · Accepted Answer

Predatory pricing is illegal and occurs when a company prices its products below cost to drive out competitors and gain a monopoly in the market. Choice A is not predatory pricing as it is for getting rid of a surplus. Choice C and D are legitimate pricing strategies of offering volume discounts or following the suggested retail price. Choice E is dynamic pricing, not predatory pricing.

Which of the Following Would Be Considered Predatory Pricing