Which of the Following Pricing Policies Involves Entering a Market

question 34

Multiple Choice

Which of the following pricing policies involves entering a market with a single low price and not significantly increasing the price even upon gaining a major market share?

• A)introductory price dealing
• B)temporary price cut policy
• C)skimming price policy
• D)penetration pricing policy
• E)zone pricing policy

---

Definitions:

Potential Competitors

Firms or individuals that are not currently in the market but have the ability to enter and compete in the future.

Oligopolistic Industry

A market structure characterized by a small number of firms dominating the market, leading to strategic interactions in pricing and output.

Economic Efficiency

A situation where the distribution of resources is designed to enhance the production of goods and services maximally.

Demand Conditions

Factors that affect consumer desire for a product or service, including income levels, tastes, and price of substitutes.