Limit Pricing Is

question 66

Multiple Choice

Limit pricing is

• A)a strategy where a firm temporarily prices below its marginal costs to drive competitors out of the market.
• B)a strategy used by a vertically integrated firm to raise rival's costs of inputs, while holding constant final product prices.
• C)when an incumbent maintains a price below the monopoly price in order to prevent entry.
• D)the act of charging a low price initially upon entering a market to gain market share.

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