Question

What is predatory​ pricing? A. Selling below cost to unload excess inventory B. A manufacturer requiring dealers to charge a specified retail price for its product C. Sellers offering the same price terms to customers at a given level of trade D. Selling below cost with the intention of punishing a competitor E. Setting prices without talking to competitors

Answer 1

Answer: Option (D)

Step-by-step explanation:

Predatory pricing which is also known as or also referred to as undercutting, which is described a the pricing strategy under which a commodity, service or product is provided at a low price with an intention in order to achieve the market of new customers , or can also be implemented in order to drive the competitors out of the current market/area , also to enforce the barriers to exit and entry for the new competitors.