The use of price as a competitive weapon to drive weaker competitors out of a national market is known as
A) experience curve pricing.
B) predatory pricing.
C) competitive pricing.
D) multipoint pricing.

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.

The Use of Price as a Competitive Weapon to Drive