Market-Skimming Prices Make Sense Under Which of the Following Conditions

question 18

Multiple Choice

Market-skimming prices make sense under which of the following conditions?

• A) The unit costs of producing a small number of units is low.
• B) The average price communicates average value.
• C) The product is a "me-too" and contains no new technology or points of difference.
• D) An insufficient number of buyers have a high current demand.
• E) The high initial price blocks competition from entering the market

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Definitions:

Conservatism

A political and social philosophy promoting traditional institutions and practices, emphasizing stability, and often resisting rapid changes in society.

Self-Transcendence

A trait dealing with the expansion of personal boundaries, including experiencing spiritual aspects and unifying with other people and the world.

Self-Enhancement

The motivation or tendency to view oneself favorably and to seek positive feedback, often by emphasizing one’s strengths and minimizing weaknesses.

Deconstructionism

A philosophy that argues reality does not exist apart from human perceptions, or constructions, of it.