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One Disadvantage of Using a Penetration Pricing Policy Is That

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One disadvantage of using a penetration pricing policy is that the high unit profit margins will attract potential competitors into production of similar products.


Definitions:

Peripheral Nervous System

The portion of the nervous system lying outside the brain and spinal cord, which includes nerves that branch out to the rest of the body, facilitating communication between the body and central nervous system.

Central Nervous System

The primary information-processing center of the body, consisting of the brain and spinal cord.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles.

Sympathetic Nervous System

A component of the autonomic nervous system that readies the body for immediate action during emergencies, known as the "fight or flight" response.

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