When Sales Figures for One of the Products of Silkskin

question 18

Multiple Choice

When sales figures for one of the products of Silkskin Cosmetics,a moisturizer,began to fall with low margins and declining volumes,the company decided to raise the price of the moisturizer.As volumes fell further,the company continued to raise prices,thus increasing margins,until it reached a price at which customers refused to buy the product.This pricing strategy is known as ________ pricing.

• A)harvest
• B)penetration
• C)low-cost leader
• D)plus-one
• E)skim

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Definitions:

Federal Trade Commission

A U.S. federal agency tasked with protecting consumers and ensuring a strong competitive market by preventing anticompetitive, deceptive, and unfair business practices.

Friendly Merger

A merger transaction agreed upon and conducted in a cooperative manner by all involved parties, typically with shared strategic goals.

Friendly Consolidation

A type of corporate merger or acquisition that is agreed upon and pursued with the cooperation of both the target and acquiring companies.

Agreement in Principle

A preliminary agreement outlining the basic terms and conditions under which an investment will be made, pending further negotiations and due diligence.