Predatory Pricing Strategy
Thomson International sells their computers for $140, despite the fact that they require $150 in order to cover the costs of production. The usual price of a computer on the home market is $300. Why do you think they have chosen to do so?
A
Because every product sold must have a lower price than the production cost.
B
Because they are exiting the market and are no longer competitive.
C
Because they want to lower the price in order to drive their competition out of business.
D
Because their computers are not very good so they are selling them at lower than production costs.