Exam Question
Limit pricing refers to
- 1. the fact that a monopoly firm always sets the highest price possible
- 2. a situation in which a firm might lower its price to keep potential competitors from entering its market
- 3. how the price is determined in a kinked demand curve model of oligopoly
- 4. none of the above
View Answer
Answer 2. a situation in which a firm might lower its price to keep potential competitors from entering its market
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