What is price skimming?
A) In this strategy, the cost of producing or buying the product—plus making a profit—is the primary basis for setting price.
B) In this strategy, price is determined in relation to rivals, factoring in other considerations such as market dominance, number of competitors, and customer loyalty.
C) This strategy is assigning regular prices to products but then resorting to frequent price-cutting strategies, such as special sales, to undercut the prices of competitors.
D) This strategy is setting a high price to make a large profit; it can work when there is little competition.
E) This strategy is setting a low price to attract many customers and deter competition.
Answer: D
Explanation: D) Price skimming is setting a high price to make a large profit; it can work when there is little competition.
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