Gourmet Pets Feels Its Target Market Is More Concerned with Perceived

question 79

True/False

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the price leadership strategy.

---

Definitions:

Polluting

The act of discharging harmful substances into the environment, negatively affecting air, water, and soil quality.

Fee

An amount of money charged for a particular service or as a payment for a right or privilege.

Pigovian Tax

A tax imposed on activities that generate negative externalities, intended to correct an inefficient market outcome by being equal to the social cost of the externalities.

Command-And-Control

Command-and-control refers to a regulatory approach where the government directly stipulates what actions are required for compliance, often seen in environmental regulation.