Valeo Fashions Has Just Introduced a New Line of Fashion

question 145

Multiple Choice

Valeo Fashions has just introduced a new line of fashion dresses for teens.They will initially enter the market at high prices in a strategy.

• A)penetration pricing
• B)yield management pricing
• C)price leadership
• D)skim pricing
• E)value pricing

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Definitions:

Marginal Costs

The swelling of total charges resulting from generating an extra unit of a good or service.

Elasticity of Market Supply

An indicator of the extent to which the supply of a product varies following a price adjustment.

Marginal Cost Curves

A graphical representation that shows how the cost of producing one more unit of a good or service varies as production increases.

Market Supply Curve

A graphical representation showing the total quantity of a good or service that suppliers are willing and able to sell at different prices.