____ is a new product pricing strategy which results in a high initial product price. This price is reduced over time as demand at the higher price is satisfied
a. Prestige pricing
b. Price lining
c. Skimming
d. Incremental pricing
e. None of the above
c
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Providers of health care insurance require applicants to provide information on their medical history. The purpose may be to minimize which of the following problems?
A) moral hazard B) adverse selection C) government taxes D) opportunity cost
If the price of mozzarella cheese (an ingredient in pizza) declines, there would be:
What will be an ideal response?
Firms should hire additional units of a resource as long as the:
A. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced. B. marginal product of the resource is less than the price of the resource. C. price of the output produced is positive. D. marginal revenue product of the resource exceeds the cost of an additional unit of the resource.
The greater is the marginal propensity to consume, the:
A. smaller is the marginal propensity to save. B. higher is the interest rate. C. smaller is the average propensity to consume. D. lower is the price level.