Question

What is predatory pricing?


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


an illegal grouping of companies that discourages competition


the laws that encourage competition in the marketplace


the combination of two or more companies into a single firm

Answer 1

Predatory pricing is defined as **the selling of a product below cost to drive competitors out of the market**. This practice aims to establish a monopoly or gain market share by temporarily lowering prices to levels that are unprofitable for competitors. Once competition is eliminated or significantly reduced, the company may raise prices again.