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In order to eliminate small competitors, a large auto maker sells cars for less than the cost of producing them. Which practice, regulated by consumer protection laws, is this?

A) price fixing

B) making misleading statements

C) predatory pricing

D) bid rigging

2 Answers

7 votes

Answer: predatory pricing

Explanation: Predatory pricing is a practice in which a large company deliberately sells a product or service for less than the cost of producing it in order to drive smaller competitors out of business. This practice is generally considered to be harmful to competition and can be regulated by consumer protection laws.

Bid rigging, making misleading statements, and price fixing are other practices that can be regulated by consumer protection laws, but they are not the same as predatory pricing. Bid rigging refers to a situation in which companies collude to manipulate the outcome of a bidding process in order to obtain a contract or award. Making misleading statements involves making false or deceptive claims about a product or service in order to mislead consumers. Price fixing refers to a situation in which companies agree to fix the price of a product or service at a certain level in order to reduce competition.

User Antoninkriz
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7 votes
Answer:
Predatory Pricing
Step-by-step explanation:

Because predatory pricing is "the pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market."
User Daisy
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