мса 42 A limit pricing strategy is one in which the firm: A I do not want to answer this question. sets the market price at a level which reflects the limit to demand, given current consumer preferences C sets the market price below the profit-maximising level to deter the entry of new firms D sets a limited price to ensure that marginal consumers are not deterred from buying the product E sets the market price above the profit-maximising level to ensure that production is not limited by diseconomies of scale F sets the market price at the limit needed to maximise profits

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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мса 42
A limit pricing strategy is one in which the firm:
A I do not want to answer this question.
sets the market price at a level which reflects the limit to demand, given current consumer preferences
C
sets the market price below the profit-maximising level to deter the entry of new firms
D
sets a limited price to ensure that marginal consumers are not deterred from buying the product
E
sets the market price above the profit-maximising level to ensure that production is not limited by diseconomies of scale
F
sets the market price at the limit needed to maximise profits
Transcribed Image Text:мса 42 A limit pricing strategy is one in which the firm: A I do not want to answer this question. sets the market price at a level which reflects the limit to demand, given current consumer preferences C sets the market price below the profit-maximising level to deter the entry of new firms D sets a limited price to ensure that marginal consumers are not deterred from buying the product E sets the market price above the profit-maximising level to ensure that production is not limited by diseconomies of scale F sets the market price at the limit needed to maximise profits
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