The deliberate act of setting prices low to eliminate market competition and then raising prices once the competition is removed is known as:
A) predatory pricing.
B) penetration pricing.
C) dumping.
D) collusive pricing.

Question

Quizplus · Accepted Answer

Predatory pricing is the deliberate act of setting prices low to eliminate market competition, making it difficult for competitors to survive. Once the competition is removed, the company raising prices, which ultimately results in higher profit.

The Deliberate Act of Setting Prices Low to Eliminate Market