A strategy of setting price below the monopoly profit-maximizing ...

[mckennatimberlake]

A strategy of setting price below the monopoly profit-maximizing price but at the highest level that will still result in a loss for a potential entrant into the market is known as
 
  A) entry pricing.
  B) contestable pricing.
  C) limit pricing.
  D) unlimited pricing.

Question 2

In the figure above, if no one owns the lake the tax that achieves the efficient outcome is ________ per ton of pesticide produced.
 
  A) 30
  B) 40
  C) 20
  D) 10

[Ksh22]

Answer to Question 1

C

Answer to Question 2

A

[mckennatimberlake]

TYSM

[ricroger]

Excellent