asked 158k views
5 votes
Which of the following is an example of price fixing (collusion)?

1) Price discrimination
2) Predatory pricing (undercutting)
3) Bait and switch
4) Price gouging

asked
User Avakar
by
8.0k points

1 Answer

7 votes

Final answer:

Predatory pricing (undercutting) is an example of price fixing (collusion) among firms.

Step-by-step explanation:

Predatory pricing (undercutting) is an example of price fixing (collusion) among firms. It occurs when an existing firm lowers its prices significantly to drive out a new entrant from the market, and then raises prices again once the competition is eliminated. This practice aims to deter new firms from entering the market and reduce competition.

answered
User Antonio Frignani
by
7.9k points
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