If the existing firms are charging a sufficiently low price to discourage others' entry into the…
Limit pricing means setting a price sufficiently low to discourage potential entrants. Cost-plus pricing adds a margin to cost, while price skimming starts with a relatively…
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If the existing firms are charging a sufficiently low price to discourage others' entry into the industry it is a strategy of
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Correct answer B
Limit pricing means setting a price sufficiently low to discourage potential entrants. Cost-plus pricing adds a margin to cost, while price skimming starts with a relatively high price and price discrimination charges different prices in different circumstances.
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Andhra Pradesh SET (APSET)