question #13

Which of the following is correct regarding a pricing strategy? None of the choices listed is correct. O With limit pricing, the incumbent commits to producing a quantity which allows competitors to earn positive-but limited-profit. O Penetration pricing is illegal and occurs when a firm charges a price below its marginal cost O With penetration pricing, the firm charges a high price to overcome large startup costs. O With limit pricing, the incumbent commits to producing a quantity that is smaller than that of a monopoly