asked 228k views
4 votes
_________ is selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.

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User Ekans
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8.0k points

1 Answer

4 votes

Answer:

Predatory pricing

Step-by-step explanation:

Predatory pricing is a pricing strategy of selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business. It is in violation of anti trust laws . It also predisposes an industry to becoming a monopoly because if successful, the firm carrying out predatory pricing would chase away other firms in the industry. Predatory pricing can also lead to price wars.

I hope my answer helps you

answered
User Starf
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