The Practice of Setting the Selling Price Below Cost with the Intent

question 74

Multiple Choice

The practice of setting the selling price below cost with the intent to drive competitors out of business is:

• A) predatory pricing.
• B) target pricing.
• C) target costing.
• D) peak-load pricing.

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Definitions:

Product Promotion

The marketing activities and strategies used to increase awareness and sales of a product.

Total Profits

The net income a company or individual earns after subtracting all costs, expenses, and taxes from total revenue, indicating the overall financial performance.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for limited control over market prices.