Which of the following is an example of strategic entry deterrence?

Question

Quizplus · Accepted Answer

Limit pricing is a strategy used by dominant firms to deter entry of potential competitors into the market. By setting a low enough price, but still earning a profit, the incumbent firm can make it unattractive for new firms to enter and compete. Marginal cost pricing, price leadership, and mark-up pricing do not necessarily deter entry of new firms into the market.

Which of the Following Is an Example of Strategic Entry