Limit pricing is a strategy used by a firm to
A) deter entry.
B) enhance short run profits.
C) raise its prices.
D) lower its costs.

Name: Limit pricing is a strategy used by a firm to A) deter entry. B) enhance short run profits. C) raise its prices. D) lower its costs.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

Limit pricing is a strategy where a firm sets its prices low enough to deter new entrants from entering the market, as potential competitors may not find it profitable to compete at those price levels.

Limit Pricing Is a Strategy Used by a Firm to