Which of the Following Is an Example of Predatory Pricing

question 271

Multiple Choice

Which of the following is an example of predatory pricing?

• A) In order to buy Microsoft Windows, you must also purchase Internet Explorer.
• B) Bus rides are cheaper for senior citizens than for other people.
• C) Prices are set low enough to drive other firms out of a market.
• D) Prices are set just high enough to prevent other firms from entering the market.

---

Definitions:

Payable Matures

Refers to the point in time when a financial obligation (payable) becomes due and must be paid.

Total Payment

The full amount paid over the life of a loan, including principal and interest.

Type of Earnings

Variations in the profits generated by a company, often categorized based on origin, such as operating or non-operating earnings.

Federal Income Taxes

Taxes levied by the government on the annual earnings of individuals, corporations, trusts, and other legal entities.