The issue arise from pricing when big seller sells below cost to put the new small competitors out of business and capture large market share is classified as?
Correct answer: D. predatory pricing
- A. price maintenance
- B. discriminatory pricing
- C. price fixing
- D. predatory pricing
Explanation
Predatory pricing occurs when a powerful seller prices below cost to drive competitors out and later strengthen its market position. Price fixing involves competitors agreeing on prices, which is a different practice.
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