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. Which pricing tactic was used by Company B?

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.

Price fixing involves an agreement between competing firms to set prices at a certain level, eliminating competition. There is no indication that Company B colluded with other companies to set prices artificially high or low. Instead, Company B's actions were independently aimed at gaining market share through aggressive pricing, thus disqualifying this option.

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.