Predatory pricing is a type of price discrimination that:
A)deliberately sets prices very low,sometimes even below costs,to minimise competition.
B)allows prices to be cut to the level of variable costs.
C)is required when a company declares bankruptcy so that it can sell its remaining goods quickly.
D)is used in the food industry for perishable goods.

Question

Quizplus · Accepted Answer

Predatory pricing is a practice by which a company deliberately sets very low prices for their products or services, often below the cost of production, in order to drive competitors out of the market. Once competition is eliminated, the company can increase its prices and regain its lost profits. This anti-competitive behavior is illegal in many countries.

Predatory Pricing Is a Type of Price Discrimination That