Question

Complete the following sentences. ​_______ pricing is setting a low price to drive competitors out of business with the intention of setting a monopoly price when the competition has gone.

A. Pillaging B. Predacious C. Piratical D. Predatory
The first firm to be accused of this practice was​ _______.
A. Standard Oil B. General Mills C. Microsoft D. ​Coca-Cola

Answer 1

Answer: The correct answers are "D. Predatory" and "A. Standard Oil".

Explanation: Predatory pricing is setting a low price to drive competitors out of business with the intention of setting a monopoly price when the competition has gone.

The first firm to be acused of this practice was Standard Oil.

Predatory prices consist of a pricing strategy that can be used by a predominant firm in the market in order to eliminate its competitors and thus secure the market monopoly. It's about reducing prices below cost.

Standard oil was the first company accused of this practice in 1958.