Final answer:
The correct option is b. No, predatory pricing is illegal and rarely successful.
Predatory pricing is a strategy where a company lowers its prices to a point where it is unsustainable for competitors to survive. Examples of successful predatory pricing in the real world include Walmart and Amazon.
Step-by-step explanation:
Predatory pricing is a strategy where a company lowers its prices to a point where it is unsustainable for competitors to survive, with the goal of driving them out of the market. While predatory pricing is generally considered illegal, there have been some examples of successful predatory pricing in the real world.
One example is the case of Walmart, which is known for its low prices. When Walmart entered the grocery market, it offered steep discounts to attract customers. This predatory pricing strategy allowed Walmart to gain a significant market share and put pressure on smaller competitors. Once the competitors were driven out of business, Walmart raised its prices.
Another example is the e-commerce giant Amazon, which used predatory pricing to establish dominance in the book industry. Amazon sold books at a loss to attract customers and capture market share from traditional brick-and-mortar bookstores. After driving many smaller bookstores out of business, Amazon raised its prices.