Answer:
Predatory Pricing
Explanation:
As the word "predator" conveys i.e animals who live by preying on other animals, predatory pricing refers to an act of pricing goods by a seller at substantially lower rate than the competitors so as to assume control of the whole market and drive out the competing firms.
Predatory pricing is illegal as it goes against the concept of healthy competition within sellers and competitive markets. A healthy competition is necessary in the market to ensure buyers get quality products and to keep monopoly in check.
In the given case, a jeweler offers it's product i.e diamond earrings at substantially lower price than that of competitors with an aim to drive out competitors and become the market leader. This is a case of Predatory Pricing.
