Entry limit pricing is a barrier to entry because it is the practice of setting a price lower than the one that maximizes profit.

Name: Entry limit pricing is a barrier to entry because it is the practice of setting a price lower than the one that maximizes profit.
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Question

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Entry limit pricing is a strategy where incumbent firms set prices lower than the profit-maximizing level to deter new competitors from entering the market, thus acting as a barrier to entry.

Entry Limit Pricing Is a Barrier to Entry Because It