Clove, a Fitness Centre, Opens a New Gym in Boston

Multiple Choice

Clove, a fitness centre, opens a new gym in Boston. Two gyms already exist around the same locality. To attract customers and drive its competitors out of business, Clove, offers a very low enrolment and monthly fee. The owners of the other gyms meet with the director of Clove to negotiate. Finally, all three gyms collude and decide to fix a standard enrolment and monthly fee that customers will have to pay. They also decide to charge a higher fee for men because they spend greater time in the gym.
-When Clove decided to offer enrolment at a very low price, it was with an intention to drive its competitors out of business.This is an example of:

A) predatory pricing.
B) vertical price fixing.
C) horizontal price fixing.
D) price discrimination.
E) bait and switch.