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When Might a Firm Use a Price-Skimming Strategy? When Might

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When might a firm use a price-skimming strategy? When might it use penetration pricing? Describe each strategy.


Definitions:

Billable Hours

The amount of an employee's work time that can be charged to a client, often used in legal and consultancy services to calculate fees.

Net Income

The remaining earnings of a business after subtracting all expenses, taxes, and costs from the gross revenue.

Profit Sharing

A company policy where employees receive a share of the company's profits based on its earnings, serving as an incentive and reward for employee performance.

Billable Hours

The amount of an employee's work time that can be charged to a client, commonly used in professional services like law and consulting.

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