When a Manufacturer of Digital Video Recorders Initially Charged a High

question 58

Multiple Choice

When a manufacturer of digital video recorders initially charged a high price but later dropped the price after others entered the market,it was practicing which pricing method?

• A)Cost-based pricing
• B)Target costing
• C)Skimming pricing
• D)Penetration pricing

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Definitions:

Existing Mortgage

A mortgage that is currently in place on a property, affecting its sale, transfer, or refinancing.

Mortgagor

An individual or entity who borrows money to purchase property and pledges that property as collateral for the loan.

Oral Agreement

A verbal contract between parties that is legally binding, although harder to prove than a written agreement.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be legally enforceable.