If a telecommunications company drastically cuts the price for cellular phone service to eliminate local competitors, the company could be charged with
A) loss leader pricing.
B) bait and switch pricing.
C) price fixing.
D) unfair slotting.
E) predatory pricing.

Question

Quizplus · Accepted Answer

Predatory pricing refers to the practice of a firm setting very low prices with the aim of driving competitors out of business. This could be the case if the telecommunications company drastically cuts the price for cellular phone service to eliminate local competitors.

If a Telecommunications Company Drastically Cuts the Price for Cellular