Economics A-Level

Limit pricing

What Limit pricing means in Economics A-Level, as defined for AQA.

Definition of Limit pricing

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Reference: AQA

Pricing closer to average cost, used by incumbents to deter entrants by abandoning short-run profit maximisation.

AQA · Contestable and non-contestable markets

Topics that use Limit pricing

Contestable and non-contestable markets (AQA A-Level)

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Using Limit pricing in the exam

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