The Practice of Charging a Very Low Price for a Product

question 208

Multiple Choice

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

• A) price fixing.
• B) predatory pricing.
• C) price discrimination.
• D) deceptive pricing.
• E) geographical pricing.

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Government Intervention

The involvement of government in the market with the aim to regulate, stabilize, or stimulate economic activity.

Classical Economic

A school of thought in economics that emphasizes the role of free markets, limited government intervention, and the importance of economic decisions based on rational self-interest.

Morally Required

Actions or behaviors that are considered necessary according to ethical principles or moral obligations.