Market-Skimming Prices Make Sense Under the Following Conditions EXCEPT ________

question 111

Multiple Choice

Market-skimming prices make sense under the following conditions EXCEPT ________.

• A) the high price communicates high value
• B) the high initial price blocks competition from entering the market
• C) the unit costs of producing a small number of units are not too high
• D) the product is a "me-too" and contains no new technology or points of difference
• E) a sufficient number of buyers have a high current demand

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Definitions:

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization.

Utilities

Services such as water, electricity, gas, and sewer services provided to consumers and businesses.

Allocate

The process of assigning or distributing resources or amounts to various accounts or periods.

Square Footage

The measurement of area, especially used in reference to the size of a building or room, calculated in square feet.