The Pricing Strategy That Is Almost the Exact Opposite of Skimming

question 287

Multiple Choice

The pricing strategy that is almost the exact opposite of skimming pricing is

• A) target pricing.
• B) penetration pricing.
• C) price lining.
• D) odd-even pricing.
• E) prestige pricing.

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Definitions:

Marginal Benefit

The supplemental value or usefulness derived from using another unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Net Benefit

The total positive impact or gain subtracted by the total cost or negative impact, typically used in the analysis of business or policy decisions.

Marginal Benefit (MB)

The augmented satisfaction or usefulness obtained by consuming or producing one extra unit of a good or service.