Limit pricing refers to A) the fact that a monopoly firm ...

[jazziefee]

Limit pricing refers to
 
  A) the fact that a monopoly firm always sets the highest price possible.
  B) how the price is determined in a kinked demand curve model of oligopoly.
  C) a situation in which a firm might lower its price to keep potential competitors from entering its market.
  D) none of the above.

Question 2

Because of the income effect, the labor supply curve is
 
  A) eventually backward bending as wage rate increases.
  B) positively sloped.
  C) horizontal.
  D) vertical.

[isabelt_18]

Answer to Question 1

C

Answer to Question 2

A