Colorful Concoctions, a Maker of Children's Crayons, Decided to Price

question 50

Multiple Choice

Colorful Concoctions, a maker of children's crayons, decided to price its boxes of crayons below the long-term market price. The firm agreed to reduce its profit margin from 30 percent to 5 percent in the short-term in order to increase market share and discourage other firms from entering the crayon market. Colorful Concoctions was implementing a

• A) variable pricing strategy.
• B) skimming price strategy.
• C) penetration pricing strategy.
• D) price lining strategy.

---

Definitions:

Stratified

Layered or arranged in layers, often referring to the structure of tissues in biology or the arrangement of sedimentary rocks in geology.

Abyssal

Refers to the deepest parts of the ocean, typically areas below 2,000 meters, characterized by very low temperatures, high pressures, and complete darkness.

Bathypelagic

Referring to the deep-sea zone, lying between about 1000 to 4000 meters below the ocean's surface, characterized by complete darkness.

Epipelagic

The uppermost layer of the ocean, extending from the surface down to about 200 meters, where sunlight is plentiful, supporting a diverse range of life.