What is predatory pricing defined as?

Predatory pricing is defined as establishing a very low price to eliminate competition. This practice involves setting prices below cost or at an unsustainably low level to drive competitors out of the market. The idea is that once the competition is reduced or eliminated, the company can then raise its prices without fear of rival firms re-entering the market, ultimately increasing its market share and profitability.

This strategy is illegal in many jurisdictions because it undermines fair competition and can lead to monopolistic practices. Companies engaging in predatory pricing can harm consumers in the long term by reducing choices and raising prices once competitors are out of the market.

The other options, while mentioning low prices or discounts, do not capture the intent and implications of predatory pricing. Instead, they point towards strategies that aim to temporarily boost sales or increase market share without the same anti-competitive nature.