The use of price as a competitive weapon to drive weaker competitors out of a national market is known as predatory pricing.

Question

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Predatory pricing refers to the strategy of setting prices lower than the usual prices for a specific period of time to force other competitors out of the market. This can be used by larger companies with a better financial position to temporarily endure the lower prices and ultimately capture a larger market share.

The Use of Price as a Competitive Weapon to Drive