A new start-up competitor to Facebook offers advertisers a lower price to advertise on its platform.This is an example of

randomized pricing

predatory pricing

None of the answers listed is correct.

cross-subsidization

third-degree price discrimination

Which of the following is correct regarding limit pricing?

None of the choices listed is correct.

At the limit price a new entrant breaks even.

The incumbent charges a price above the price found in a monopoly.

The incumbent produces an output corresponding to the monopoly output.

At the limit price the incumbent has a profit.