Limit Pricing Is

question 46

Multiple Choice

Limit pricing is:

• A) a strategy whereby 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 rivals' costs of inputs, while holding constant final product prices.
• C) a strategy whereby 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.