The Strategy of Establishing a Price That Prevents the Entry

question 274

Multiple Choice

The strategy of establishing a price that prevents the entry of new firms is called

• A)cartel pricing.
• B)limit pricing.
• C)price leadership.
• D)profit maximizing price.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level in a specified period.

Quantity Supplied

The level of a commodity or service that manufacturers are eager and capable of providing for purchase at a determined price over an established period.

Rollerblades

Inline skates used for recreation or sport, featuring a single line of wheels attached to the bottom of a boot.

Demand For Tomatoes

The desire and ability of consumers to purchase tomatoes at various prices, influenced by factors such as income, taste, and price of substitutes.