Predatory Pricing Strategy
Thomson International sells its computers for $140, despite a production cost of $150 per unit. The typical price of a computer in the domestic market is $300. What is the most likely reason for this pricing strategy?
A
The computers are of low quality, forcing the company to sell them below production costs.
B
The company is intentionally lowering prices to drive competitors out of business.
C
The company is no longer competitive and is preparing to exit the market.
D
The company follows a standard practice of selling all products below their production costs.
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