A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
A) market-skimming pricing
B) target costing
C) deceptive pricing
D) market-penetration pricing
E) predatory pricing
Ans: A) market-skimming pricing
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A market-penetration pricing strategy is most suitable when _______
A) a low price slows down market growth B) production and distribution costs fall with accumulated production experience C) a high price dissuades potential competitors from entering the market D) the market is characterized by inelastic demand E) a low price encourages actual competition
Concentrating solely on one form of competitive advantage generally leads to the highest possible level of profitability.
Answer the following statement true (T) or false (F)
Vertical analysis is a technique that expresses each item in a financial statement
A) in dollars and cents. B) as a percent of the item in the previous year. C) as a percent of a base amount. D) starting with the highest value down to the lowest value.
In the United States legal system, a person charged with a crime is presumed guilty unless the
person can prove he or she is not guilty. Indicate whether the statement is true or false