Five pricing practices are scrutinized because of potential unethical or illegal actions. They are (1) price fixing, (2) price discrimination, (3) deceptive pricing, (4) geographical pricing, and (5) __________.
A)predatory pricing
B)discount pricing
C)lateral price fixing
D)regional rollback pricing
E)delayed payment pricing

Question

Quizplus · Accepted Answer

The fifth pricing practice that is scrutinized due to potential unethical or illegal actions is predatory pricing, which occurs when a company sets prices unreasonably low to drive competitors out of the market and then raises the prices once the competition is eliminated. This practice is viewed as anti-competitive behavior and is prohibited by antitrust laws.

Five Pricing Practices Are Scrutinized Because of Potential Unethical or Illegal