A Strategy to Intentionally Sell Below Cost to Push a Competitor

question 56

Multiple Choice

A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs, is called ________.

• A) price-fixing
• B) price discrimination
• C) deceptive pricing
• D) bait and switch
• E) predatory pricing

---

Definitions:

September

The ninth month of the year in the Gregorian calendar.

Positive Net Present Value

An indicator that an investment is expected to generate more cash than the initial amount invested, viewed positively in capital budgeting.

Regular Dividend

A fixed amount paid by a company to its shareholders out of its profits (or reserves) on a regular schedule.

Dividend Policy

A company's approach to distributing profits back to its shareholders in the form of dividends.