Question

Predatory pricing is a type of price discrimination that​ ________. A. allows prices to be cut to the level of variable costs B. is used in the food industry for perishable goods C. is required when a company declares bankruptcy so that it can sell its remaining goods quickly D. deliberately sets prices very​ low, sometimes even below​ costs, to minimize competition

Answer 1

Answer:

D. deliberately sets prices very​ low, sometimes even below​ costs, to minimize competition

Explanation:

Predatory pricing is a strategy aimed at minimizing competition, either by driving existing businesses out of the market or by creating barriers to potential new competitors by setting extremely low prices, sometimes even operating at a loss. If other businesses cannot compete in prices, they will be driven out of the market.

The alternative that better fits the description is D. deliberately sets prices very​ low, sometimes even below​ costs, to minimize competition.