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

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Limit pricing is a specific pricing strategy designed to prevent the entry of competitors into a market by setting a low enough price to make it unprofitable for new firms to enter. This strategy can be used by dominant firms to maintain their market position and prevent competition, but it can also lead to accusations of anti-competitive behavior. Price war (A) refers to a situation where multiple firms continually lower prices in response to each other, typically resulting in lower profits for all involved. Price leadership (C) occurs when a dominant firm in a market sets the price and other firms follow suit. Setting a profit-maximizing price (D) is a common goal for many firms, but it may not necessarily prevent new entrants into the market.

The Strategy of Establishing a Price That Prevents the Entry