Limit pricing in a contestable market sets the price at the highest level that ________
A) maximizes the profit of an entrant
B) maximizes the profit of the existing firm
C) maximizes the profit of both the existing firm and the entering firm
D) inflicts a loss on an entrant
D
Economics
You might also like to view...
Which of the following is a recent trend in the labor market?
A) Low-skilled workers have lost jobs. B) The demand for high-skilled labor has increased as technology has increased. C) The wages of high-skilled labor have decreased. D) The marginal productivity of low-skilled workers has increased.
Economics
A firm will not hire additional workers once
A) it earns accounting profits. B) the additional cost of a worker equals the additional revenue from the worker. C) total product is rising. D) the company reaches its breakeven output level.
Economics