Which of the Following Is False Regarding the Practice of Limit

Multiple Choice

Which of the following is false regarding the practice of limit pricing by a dominant firm?

A) Limit pricing is a strategy to keep price below the level that maximizes profit to reduce the number of firms entering the fringe.
B) Limit pricing is a strategy that sacrifices current profits to maintain higher future profits.
C) Limit pricing is most appealing when the dominant firm has a cost advantage over the fringe firms.
D) Limit pricing is most attractive to a dominant firm that is more interested in current profits than future profits.