Consider the following statements:1.Predatory Pricing is the practice of a firm selling a product at very low price with the intention of driving competitors out of the market.2.Competition Commission of India (CCI) has the power to take a call on predatory pricing in the telecom sector.Select the correct statements using the codes given below:

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Q. Consider the following statements:
1.Predatory Pricing is the practice of a firm selling a product at very low price with the intention of driving competitors out of the market.
2.Competition Commission of India (CCI) has the power to take a call on predatory pricing in the telecom sector.
Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation –

Statement 1 is correct. Predatory Pricing is the practice of a firm selling a product at very low price with the intention of driving competitors out of the market.

Statement 2 is incorrect. At present, Telecom Regulatory Authority of India (Trai) has the power to take a call on predatory pricing in the telecom sector.

Source: ForumIAS

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