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.