A Strategy That Establishes the Price at the Highest Possible

question 10

Multiple Choice

A strategy that establishes the price at the highest possible level and targets only a select number of consumers who can afford the product/service, is _____.

• A)Creaming the market
• B)Price Skimming
• C)Price Penetration
• D)Price elasticity

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Definitions:

Price-fixing

An agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold, not allowing market forces to determine prices.

Tying Contracts

Agreements where a seller requires a buyer to purchase additional goods as a condition of buying a desired product, often seen as anticompetitive.

Natural Monopoly

A market condition where a single firm can provide a good or service to an entire market at a lower cost than if there were multiple competing providers, often due to high fixed costs or unique resources.

Alternatives

Represents the various options or choices available to individuals, firms, or governments in decision-making processes.