Amazing Bread begins selling its bread at a loss by cutting its price by more than one-half in an attempt to gain a considerable market share over its competitors. Once its competitors are out of the picture, Amazing Bread raises the price of its bread by 300%. This type of action is known as:

a. predatory pricing.
b. restraint of trade.
c. monopoly.
d. price discrimination.

Answer: a. predatory pricing.

Business

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A) the amount of cash received depends on the amount of bond discount or premium B) for each interest payment, the amount of Interest Expense equals the amount of cash paid C) for each interest payment, the amount of Interest Expense depends on the amortization of the bond discount or premium D) the journal entry to record the issuance of the bonds includes a debit to the Bonds Payable account

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According to Direct Marketing, the number one reason consumers remain in a permission marketing program is:

A) they receive account status updates B) contests and sweepstakes being offered C) price bargains offered D) the content is interesting

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