Which of the Following Should Be True for a Skimming

question 78

Multiple Choice

Which of the following should be true for a skimming price to be successful?

• A) Target consumers should be price sensitive.
• B) Supply should exceed demand.
• C) Demand must be stable.
• D) The producer should use intensive distribution.
• E) The product has clear, meaningful advantages over alternatives in the market.

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Definitions:

Minimize Losses

A strategy or approach aimed at reducing the amount of losses incurred in a business or investment.

Highly Differentiated

Refers to products, services, or markets where there is significant variation in features, quality, or branding, making each distinct from others.

Marginal Revenue

The extra income a company gains by selling an additional unit of a product or service.

Average Revenue

The revenue a company receives per unit of sales, calculated by dividing total revenue by the number of units sold.