The kind of pricing in which prices are set below the cost temporarily and intentionally to destroy the competitors is classified as _________?
Correct answer: B. predatory pricing
- A. non-predatory pricing
- B. predatory pricing
- C. descriptive pricing
- D. augmented pricing
Explanation
Predatory pricing deliberately sets prices below cost for a period to weaken or eliminate competitors, with the possibility of raising prices later. The word predatory distinguishes this strategy from ordinary competitive price reductions.
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