Effective Limit Pricing Between One Incumbent Firm and One Potential

Multiple Choice

Effective limit pricing between one incumbent firm and one potential entrant involves:

A) the incumbent linking the pre-entry price to post-entry profits only.
B) the incumbent reducing price below the monopoly price to prevent entry only.
C) the incumbent linking the pre-entry price to post-entry profits and the incumbent reducing price below the monopoly price to prevent entry.
D) None of the statements are correct.