Limit pricing will effectively deter entry when:
A) the incumbent links the pre-entry price to post-entry profits.
B) the incumbent has incomplete information.
C) the entrant must commit to enter the market.
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Limit pricing deters entry when the incumbent sets a pre-entry price low enough to make post-entry profits unattractive for potential entrants.

Limit Pricing Will Effectively Deter Entry When