A Company with a New Product Decides to Set the Initial

question 6

Multiple Choice

A company with a new product decides to set the initial price low so that customers will try the product. This is an example of

• A) Price gouging
• B) Predatory pricing
• C) Penetration pricing
• D) Price skimming

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Definitions:

Successive Years

A term used to describe years that follow one after another without interruption.

Loan

A borrowed amount of money that is to be repaid along with interest.

Investment

The distribution of funds or other resources with the aim of earning revenue or profit.

Total Return

The overall financial gain or loss on an investment, considering both capital gains and income such as interest or dividends.