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https://en.wikipedia.org/wiki/Limit_price https://en.wikipedia.org/wiki/Limit_price

• ciarannolan 6y ago
  >A limit price (or limit pricing) is a price, or pricing strategy, where products are sold by a supplier at a price low enough to make it unprofitable for other players to enter the market. >It is used by monopolists to discourage entry into a market, and is illegal in many countries.[1] The quantity produced by the incumbent firm to act as a deterrent to entry is usually larger than would be optimal for a monopolist, but might still produce higher economic profits than would be earned under perfect competition.