Predatory pricing is 196 andrew owns dozens of very

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195. Predatory pricing is __________. 196. Andrew owns dozens of very successful print shops. His shops specialize in low cost black and white copies and feature user-friendly machines consumers can easily operate. Recently, Andrew has noticed many more competitors in the areas where his stores are located. In an attempt to eliminate the competition, Andrew has decided to charge a very low price for his black and white copies, a price so low his competitors will be forced out of business. After the competition has been driven out, Andrew plans to raise the price of his copies. Andrew is planning to engage in the illegal practice of __________. a) price fixing b) price inflation c) predatory pricing d) competitive pricing e) price flighting Ans: c Feedback: Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business. Page: 396-397 Learning Objective: 4
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