What is predatory pricing quizlet?

Predatory pricing (also undercutting) is a pricing strategy where a product or service is set at a very low price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors.

What do you mean by predatory pricing?

Predatory pricing is a deliberate strategy, usually by a dominant firm, of driving competitors out of the market by setting very low prices or selling below the firm’s incremental costs of producing the output (often equated for practical purposes with average variable costs).

What is predatory pricing in India?

Indian Position. Competition Act 2002 says that “predatory price” means the sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors[xviii].

What is predatory pricing Brainly?

Predatory pricing is the illegal act of setting prices low in an attempt to eliminate the competition. … Companies that participate in predatory pricing might engage in a variety of activities intended to drive out competitors. This may include unethical production methods to minimize costs.

Is predatory pricing Rational?

If there are no barriers to entry, once a predatory firm raises prices above the competitive level, other firms will enter the market and force prices down. Thus, if there are no barriers to entry, predatory pricing is not a rational strategy.

What are examples of price discrimination?

Examples of forms of price discrimination include coupons, age discounts, occupational discounts, retail incentives, gender based pricing, financial aid, and haggling.