A Penetration Pricing Policy Is Most Likely to Be Effective

question 280

Multiple Choice

A penetration pricing policy is most likely to be effective when (1) many segments of the market are price-sensitive; (2) a low initial price discourages competitors from entering the market; and (3) _________.

• A)unit production and marketing costs fall dramatically as production volumes increase
• B)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable
• C)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost
• D)the high initial price will not attract competitors
• E)customers interpret the high price as signifying high quality

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Definitions:

Arsenic Ions

Ions that contain arsenic in different oxidation states, often toxic and present in various environmental and industrial contexts.

Orpiment

A natural mineral composed of arsenic sulfide (As2S3), historically used as a pigment and with various industrial and medicinal applications.

Soluble Sulfide

A compound containing the sulfide ion that is soluble in water, often producing hydrogen sulfide gas upon contact with acid.

Arsenic

A toxic metalloid element with the symbol As and atomic number 33, known for its various allotropes and compounds.