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stars_and_moon stars_and_moon
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Posts: 3218
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7 years ago
There are one large and two small car dealerships in a town.  The large dealer begins selling cars way below cost in an attempt to drive the small dealerships out of business.  Once they are out of business, the large dealership knows it can raise prices high since it won't have any competition.  This is an example of
A) competitive pricing.
B) price discrimination.
C) marginal cost pricing.
D) predatory pricing.
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kingbykingby
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#1
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7 years ago
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#2
7 years ago
I compared your answer with a buddy, and it matches

Thanks
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#3
7 years ago
I instantly knew the answer when I read the question, happy to help
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