Question

What is predatory pricing?


the laws that encourage competition in the marketplace


the combination of two or more companies into a single firm


an illegal grouping of companies that discourages competition


the selling a product below cost to drive competitors out of the market

Answer 1

Predatory pricing is **the selling of a product below cost to drive competitors out of the market**. This practice is intended to eliminate competition, allowing the company to increase prices and gain market dominance once the competitors have been driven out.