________ refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
A)Oligopolistic pricing
B)Captive pricing
C)Dynamic pricing
D)Zone pricing
E)Predatory pricing

Question

Quizplus · Accepted Answer

Predatory pricing refers to a pricing strategy where a company sells its products or services at very low prices with the purpose of driving competitors out of business or preventing new ones from entering the market. The company does not intend to make profits immediately but intends to achieve higher long-run profits by eliminating competition. This practice is illegal in many countries as it violates competition laws.

________ Refers to Selling Below Cost with the Intention of Punishing