Limit Pricing Refers to

question 49

Multiple Choice

Limit pricing refers to

• A)the highest price a monopolist can set.
• B)the highest price that just inflicts a loss on a potential entrant.
• C)a strategy used by entering firms in contestable markets.
• D)the lowest price a duopoly can set.
• E)none of the above.

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Definitions:

Cash Flows From Operations

The amount of cash generated by a company’s normal business operations.