Question

A firm may be able to deter entry into its market by

Answer 1

Answer:

A firm may be able to deter entry into its market byLimit price

Answer 2

Limit price

In a particular market an existing firm may be producing a monopoly level of output, and thereby making supernormal profits. ... One way the incumbent can deter entry is to produce a higher quantity at a lower price than the monopoly level, a strategy known as limit pricing.....