The strategy of establishing a price that prevents the entry of new firms is called

Name: The strategy of establishing a price that prevents the entry of new firms is called
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Limit pricing is a strategy where an incumbent firm sets a low price, and possibly increases output, to deter entry by new competitors. This makes it unprofitable for potential entrants to enter the market, as the incumbent firm's low prices do not allow new firms to cover their initial costs and earn a sustainable profit.

The Strategy of Establishing a Price That Prevents the Entry