The practice of the only seller in a market charging a price at the highest level that would still inflict a loss on a new entrant into the market is called
A) limit pricing.
B) trigger pricing.
C) agile pricing.
D) collusive pricing.

Question

Quizplus · Accepted Answer

Limit pricing is a strategy used by monopolies or market leaders to set the price of their product or service at a level low enough to deter new entrants into the market. This price is still high enough for the incumbent to make a profit but low enough to make it unattractive or unprofitable for potential competitors to enter the market.

The Practice of the Only Seller in a Market Charging