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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