Economics B A-Level
Limit pricing
What Limit pricing means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Limit pricing
Check what you remember
Read the wording for your board, then hide it and explain Limit pricing in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Pricing competitively to deter new rivals, used by existing firms because of the threat of entry.
Topics that use Limit pricing
- Barriers to entry (Pearson Edexcel A-Level)
Related terms
- Barriers to entry
- Competitive advantage
- Economies of scale
- Market structure
- Monopoly power
- Perfectly contestable market
- Contestability
- Intellectual property rights
Using Limit pricing in the exam
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