Q. Which of the following statements correctly defines predatory pricing?
Quarterly-SFG-Jan-to-March
Red Book

[A] The sale of goods or services at a price above cost to attract competition and foster market growth.

[B] The practice of selling goods or services below cost to reduce competition or eliminate competitors, as identified in Section 4(2) of the Competition Act, 2002.

[C] The provision of goods or services at a discount to benefit consumers without any intention to harm competition.

[D] A practice where companies collaborate to raise prices and increase profits in the market.

Answer: B
Notes:

Explanation:

  • Predatory pricing involves setting prices below cost to harm competition by driving competitors out of the market, which is recognized as an abusive practice under Section 4(2) of the Competition Act, 2002.

SourceTH


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