A penetration pricing policy
A. involves temporary price cuts to speed new products into market.
B. is the same as a "meeting competition" price-level policy.
C. may be wise if a firm expects strong competition very soon after its product introduction.
D. is wise when demand is fairly inelastic-offering an "elite" market.
E. involves a series of step-by-step price reductions along an inelastic demand curve.
Answer: C
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