What Is One of the Drawbacks of Using a Price

question 83

Multiple Choice

What is one of the drawbacks of using a price skimming strategy?

• A) It is difficult to lower prices on an introductory product.
• B) Price skimming allows competitors to easily enter the market.
• C) Firms must consider the high costs associated with producing a small volume of product.
• D) Price skimming does not work well with new-to-the-market, innovative products.
• E) Price skimming is often challenged as being illegal.

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Definitions:

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is considered the father of scientific management, proposing that by optimizing and simplifying jobs, productivity would increase.

Scientific Management

A theory in management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Worker Productivity

The measure of the efficiency of a worker or group of workers in converting inputs into useful outputs.

Telomeres

The area at the tips of each chromosome that is reduced to a tiny amount as time passes. By the end of life, the telomeres are very short.