What is an example of predatory pricing?

Predatory pricing is a strategy where a company sets prices extremely low, often below its own cost, with the primary goal of eliminating competition from the market. By selling products or services at such low prices, the company can drive competitors out of business because they cannot sustain themselves in a market where prices are set unsustainably low. Once competition is reduced or eliminated, the company may then increase prices to recoup losses and maximize profits.

In the provided options, selling below cost to eliminate competition aligns perfectly with this definition, making it the correct example of predatory pricing. It demonstrates a strategic maneuver focused on market domination rather than immediate profit, which is the hallmark of predatory pricing tactics.

The other options do not reflect the concept of predatory pricing. Charging a standard price or offering a premium price caters to different market segments and does not imply any intent to undermine competitors. Selling bundled products at a lower price can be a competitive strategy but does not necessarily entail the intent to eliminate competition through unsustainable pricing practices.