Question

When Lofonift Inc. introduced its flagship MP3 player, it captured the market by offering the product at a very low price. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised the price. In this scenario, Lofonift Inc. most likely indulged in ___________ .

Answer 1

Predatory Pricing or Undercutting

Step-by-step explanation:

Predatory Pricing is a business strategy where goods or services are placed at a relatively low cost with the aim of reaching fresh clients or pushing rivals out of the industry or creating obstacles for prospective new rivals when entering the industry.

The company that decreased the prices pushes prices back up when competing businesses have gone out of business.