A Market-Penetration Pricing Policy Should LEAST Likely Be Used for a New

question 42

Multiple Choice

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

• A) the market is highly price sensitive
• B) production and distribution costs fall as sales volume increases
• C) the product's quality and image support a high price
• D) a high price helps keep out the competition
• E) there are few or no competitors in the market

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Definitions:

Noncollusive Oligopoly

A market structure where a few dominant firms compete without any explicit agreements to fix prices or market shares, often leading to intense competition.

Homogeneous Oligopoly

An oligopoly in which firms produce a standardized product.

Homogeneous Oligopolists

Firms within an oligopolistic market selling products that are so similar that they are perfect substitutes for each other.

Pure Monopoly

A market structure where a single supplier provides a unique product or service without any close substitutes, giving it significant control over market prices.