Which of the following terms refers to the practice whereby an incumbent firm discourages entry by charging a low price before entry occurs?
A)Limit pricing
B)Price leading
C)Predatory pricing
D)Quality pricing
E)Capacity expansion

Question

Quizplus · Accepted Answer

Limit pricing is a strategy used by incumbent firms to deter new entrants into the market by setting prices low enough to make entry unattractive, but not so low as to constitute predatory pricing. This approach is aimed at maintaining market share and discouraging competition by making the market less appealing to potential new entrants.

Which of the Following Terms Refers to the Practice Whereby