Market Skimming Is a Short-Term Price Objective That Involves Setting

question 12

True/False

Market skimming is a short-term price objective that involves setting a minimum price that equals direct variable costs.

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Definitions:

External Benefit

A positive effect on a third party or the society at large, generated by the production or consumption of a good or service.

Externalities

Costs or benefits of a market activity borne by a third party; can be negative (costs) or positive (benefits).

Private Solutions

Solutions derived from individual or corporate initiatives without direct government intervention or subsidies.

Interested Parties

Individuals or groups that have a stake or interest in the outcome of a project, decision, or endeavor.