If a monopolist sets a low price to discourage potential competitors from entering the market,it is referred as
A)price skimming.
B)predatory pricing.
C)penetration pricing.
D)limit pricing.

Question

Quizplus · Accepted Answer

Limit pricing is a strategy where a monopolist sets a low price to deter entry by potential competitors, making it unprofitable for them to enter the market.

If a Monopolist Sets a Low Price to Discourage Potential