A Penetration Pricing Policy Is Most Likely to Be Effective

question 216

Multiple Choice

A penetration pricing policy is most likely to be effective when which of these is true?

• A) Lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
• B) The high initial price will not attract competitors.
• C) A low initial price discourages competitors from entering the market.
• D) Customers interpret the high price as signifying high quality.
• E) Enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.

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Definitions:

Conventional Antipsychotics

A class of drugs primarily used to treat symptoms of psychosis, such as hallucinations and delusions, prevalent in conditions like schizophrenia.

Atypical Antipsychotic

A class of medication used to treat psychiatric conditions, less likely to cause certain side effects compared to traditional antipsychotics.

D-2 Receptors

Dopamine receptors mainly involved in the modulation of neurotransmission, influencing movement, motivation, and emotional response.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of antipsychotic medication.