When Burroughs-Welcome Introduced the First Anti-AIDS Drugs,they Initially Set the Price

question 105

Multiple Choice

When Burroughs-Welcome introduced the first anti-AIDS drugs,they initially set the price at $10,000 for a year's supply.Burroughs-Welcome was probably pursuing a __________ pricing strategy.

• A) skimming
• B) introductory
• C) slotting allowance
• D) market penetration
• E) cost-based

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

Market Value

The existing market price for buying or selling an asset or service.

Accounting Profit

Net income as reported on the financial statements, which includes revenue minus expenses, excluding the cost of capital.

Depreciated Value

The reduced valuation of an asset after accounting for wear and tear, age, or obsolescence.