Using Temporary Price Cuts to Speed a Producer's New Product

question 199

Multiple Choice

Using temporary price cuts to speed a producer's new product into a market is known as:

• A) a skimming pricing policy.
• B) introductory price dealing.
• C) a flexible-price policy.
• D) a penetration pricing policy.
• E) a meeting competition pricing policy.

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Definitions:

Productive Efficiency

Achieved when goods or services are produced at the lowest possible cost and utilizing resources in the best way possible.

Average Total Cost

The total cost of production divided by the quantity of output produced, showing the average cost per unit.

Technological Advance

Progress in technology that often leads to improvements in efficiency, productivity, and the development of new products.

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.