When a Company Sets a High Price for a New

question 8

Multiple Choice

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.

• A) market-skimming
• B) cost-plus
• C) market-segmentation
• D) market-penetration
• E) competitive

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Definitions:

Accelerator Pedal

A pedal in a vehicle that controls the amount of fuel or power sent to the engine, regulating speed.

Throttle Body

A component in the air intake system of an internal combustion engine that controls the amount of air flowing into the engine, in response to the driver's accelerator pedal input.

Rotary Engines

An internal combustion engine where the combustion chamber rotates around a fixed crankshaft, known for a compact and lightweight design.

Lobe

A projection or segment of an object, typically referring to the part of a camshaft that engages with a valve lifter in an internal combustion engine to open and close valves.