A single firm that charges the monopoly price in the market earns

$800

. If another firm successfully enters the market, the incumbent's profits fall to

$500

and the entrant earns

$450

. If the incumbent engages in limit pricing, its profits are

$600

. For what interest rate,

L_()

, is limit pricing a profitable strategy for the incumbent?

A single firm that charges the monopoly price in the market earns $800. If another firm successfully enters the market, the incumbent's profits fall to $500 and the entrant earns $450. If the incumbent engages in limit pricing, its profits are $600. For what interest rate, LL is limit pricing a profitable strategy for the incumbent? A single firm that charges the monopoly price in the market earns $800. If another firm successfully enters the market, the incumbent's profits fall to $500 and the entrant earns $450. If the incumbent engages in limit pricing, its profits are $600. For what interest rate, LL is limit pricing a profitable strategy for the incumbent