Company A opened its retail location in October. Company B, an established competitor, advertised deep discounts for the first three months that company A was open. As a result, company A closed within that three month period.

Bait and switch is a deceptive marketing tactic where customers are lured in with attractive offers that are not honored, only to be switched to a different product or service. In this scenario, Company B did not advertise misleading offers; rather, it provided deep discounts aimed at genuine competition, making this choice incorrect.

Predatory pricing is characterized by temporarily lowering prices to an unsustainable level to eliminate competition. Company B's strategy of offering deep discounts specifically during the critical initial period of Company A's operation exemplifies this tactic, as it pressured Company A's financial viability, leading to its closure.

Price discrimination occurs when a company charges different prices to different customers for the same product or service, often based on what the market will bear. In this case, Company B uniformly applied deep discounts to target Company A's market share, rather than varying prices for different customer segments, making this choice irrelevant.