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Amazon lowered the prices of books below cost. This forced many book stores like Barnes & Noble and The Booksmith to go out of business. The economic term for what they did is _________.
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Amazon lowered the prices of books below cost. This forced many book stores like Barnes & Noble and The Booksmith to go out of business.

The economic term for what they did is _________.

User Jagruti
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Answer:

Predatory pricing

Step-by-step explanation:

Predatory pricing is the process by which companies bring down their prices to take the competition out of the market, or to create barriers for others entering the market.

Competitors will not be able to keep up with the low pricing and eventually go out of business.

This is what happened when Amazon lowered prices of books, putting bookstores like Barnes & Noble and The Booksmith out of business.

User Nirbhay Rana
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