Predatory pricing occurs when (ever):

A. Apple introduces new and really expensive products and truly loyal Apple customers will do almost anything and pay any amount to get the "new stuff" first.

B. Firms charge different prices to different customers even when no differences exist in the costs of marketing to those customers.

C. Two or more firms collude and agree to not compete on the basis of price.

D. Firms engage in "dumping" practices, particularly when foreign firms market to US customers.

E. Each statement actually is true

Question

Business

Julien Dean

26 July, 17:04

Predatory pricing occurs when (ever):

A. Apple introduces new and really expensive products and truly loyal Apple customers will do almost anything and pay any amount to get the "new stuff" first.

B. Firms charge different prices to different customers even when no differences exist in the costs of marketing to those customers.

C. Two or more firms collude and agree to not compete on the basis of price.

D. Firms engage in "dumping" practices, particularly when foreign firms market to US customers.

E. Each statement actually is true

+4

Answers (1)

Know the Answer?

David Rice · Answer 1

Answer is option D, i. e. Firms engage in "dumping" practices, particularly when foreign firms market to US customers.

Explanation:

Predatory pricing is a kind of pricing strategy that is used to drive out the newly entered competitor out of the market. The strategy uses lowering the price of the product into a very cheap product that grasps the attention of the customers and tempts them to buy from that very brand instead of the new entry. This is sometimes referred to as "dumping" strategy.