Which of the Following Is Correct with Regard to the Pricing

question 223

Short Answer

Which of the following is correct with regard to the pricing of existing and new products?
Price skimming is generally most effective for consumer goods, but penetration pricing is generally most effective for industrial goods.
The penetration pricing option is generally most effective for both consumer and industrial goods.
In the car rental business, setting prices below the market generally works best.
Penetration pricing is generally superior to a skimming strategy for new products.
None of these are correct.

Recognize the mechanisms through which market economies resolve basic economic questions regarding production, distribution, and consumption.

Understand the basic components and functions of the circular flow model in a market economy.

Identify the roles of households and businesses within the market system.

Comprehend the process and importance of income distribution and resource allocation in a market economy.

---

Definitions:

Chief Shopper

Typically refers to the primary individual within a household or organization responsible for making purchasing decisions and conducting the bulk of shopping activities.

Ernest Hemingway

An influential American novelist and short-story writer known for his distinctive writing style and themes of courage, loss, and the human struggle.

American Society

A broad term referring to the social structure, cultural norms, and collective behavior of people living in the United States.

Preoccupation with Money

The state of being overly concerned or obsessed with acquiring wealth, often at the expense of other values or aspects of life.