If a Market Penetration Pricing Strategy Results in Lower Per-Unit

question 25

Multiple Choice

If a market penetration pricing strategy results in lower per-unit cost,competitors might be discouraged from entering the market because

• A) selective consumer demand will increase gross profit margins.
• B) a high/low cost-based pricing strategy will not work.
• C) they would likely need to quickly produce a large volume in order to compete.
• D) profits would increase too rapidly.
• E) they would be able to advertise only to the same target market as the firm that introduced the original product.

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Definitions:

Personal Liability

The legal responsibility of an individual to settle a debt or pay for damages out of their own assets.

Fraud

The intentional deception made for personal gain or to damage another individual.

Shareholder

An individual or institution that owns at least one share of a company's stock, making them partial owners of the company.

Shareholder's Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, for harm done to the corporation.