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It is easy to imagine circumstances in which a monopoly would charge less than the text-book profit-maximising price, either to extend its market (with a view to raising prices later) or to deter new entrants (a strategy known as limit-pricing).
ECONOMIST: Big friendly giant | The
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The Transport Committee has its last session on the traffic management inquiry (how do you knock utility company heads together to limit holes in the road and curb congestion without road pricing etc...).
BBC: Viewing guide: What's on in Parliament in coming week
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Capping pricing structures, hindering profit and business expansion will limit the capacity for operators to expand coverage and improve services, making broadband access cost-prohibitive for millions of people.
FORBES: Using Joe And Jane's Money, The OECD Exploits Joe And Jane
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As the Big Three member with the highest consumer scores before employee pricing--thanks mainly to its popular 300 sedan series--the company was able to limit its sales slump.
FORBES: Branding Backfire