Limit pricing is when a firm keeps prices low in order to deter rivals from entering its market.

Name: Limit pricing is when a firm keeps prices low in order to deter rivals from entering its market.
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Question

Quizplus · Accepted Answer

Limit pricing is a strategy used by firms to maintain low prices, with the aim of deterring potential competitors from entering the market because the profit margins appear too small to be attractive.

Limit Pricing Is When a Firm Keeps Prices Low in Order