number #22

Which of the following is correct in a limit pricing situation? O The residual demand curve corresponds to the market demand curve. The limit quantity forces the incumbent and the new entrant to evenly split the market. O At the limit price. the incumbent's profit is higher than at the monopoly price and this limits the harm done to the incumbent by the new entrant O The incumbent produces a larger quantity and sells at a lower price compared with a normal monopoly. O The limit price equals the monopoly price