Multiple Choice
If a dominant firm follows a strategy of limit pricing, this firm charges a price _________ the current profit-maximizing level in order to _____________.
A) equal to; maximize profits.
B) below; reduce the rate of expansion by the fringe.
C) above; drive out the fringe.
D) below; limit dominant firm's marginal cost.
Correct Answer:
Verified
Correct Answer:
Verified
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