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Price Skimming
Price skimming involves setting a relatively high price for a new product or service at the beginning, then lowering the price over time.
Cost-Plus Approach
A pricing strategy where the selling price of a product is determined by adding a specific markup to its production cost.
Differential Income
The difference in income between two alternative decisions or scenarios.
Fixed Expenses
Costs that do not change in total regardless of changes in the amount of goods or services produced or sold, such as rent, salaries, or insurance premiums.
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