Predatory pricing involves a firmA. requiring that the firm reselling its product do so at a specified price. B. temporarily cutting the price of its product to drive a competitor out of the market. C. colluding with another firm to restrict output and raise prices. D. selling two individual products together for a single price rather than selling each product individually at separate prices.

B) temporarily cutting the price of its product to drive a competitor out of the market.

Explanation:

Predatory pricing is an illegal practice by which a company temporarily lowers its selling price below cost in order to eliminate competition. Businesses must make a profit in order to survive, so unless they have a lot of money on their backs, they cannot survive selling below cost. Predatory pricing was very common in the 19th century when large monopolies were formed in the US, e. g. railroads and steel. The Sherman Antitrust Act of 1890 made monopolies and predatory pricing illegal.

Large companies used predatory pricing strategies to first drive competitors out of a market, and then they started selling their or services at higher than normal market prices. So for a short time they lost money by selling cheap, but then they took advantage of their monopolistic power to charge extremely high prices and make huge profits.

B.

Explanation:

Predatory pricing involves a firm temporarily cutting the price of its product to drive a competitor out of the market. Such as a predator attacking it's prey, the predatory company attacks the other companies (prey) by making sure that they cannot compete with the prices that they are setting, which will ultimately remove them from the market due to a lack of profit.