Limit pricing occurs when a firm sets price:
A. equal to marginal cost.
B. equal to average cost.
C. at different amounts for different groups of consumers.
D. so low that other firms are prevented from entering the market.
Answer:D
Limit pricing occurs when a firm sets price:
A. equal to marginal cost. B. equal to average cost. C. at different amounts for different groups of consumers. D. so low that other firms are prevented from entering the market.