If a Market Penetration Pricing Strategy Results in Lower Per-Unit

question 102

Multiple Choice

If a market penetration pricing strategy results in lower per-unit cost,competitors will be discouraged from entering the market because

• A) selective consumer demand will increase gross profit margins.
• B) a high / low cost-based pricing strategy will not work.
• C) they would likely need to quickly produce a large volume in order to compete.
• D) profits would increase too rapidly.
• E) they will only be able to advertise in the same media as the firm using the market penetration strategy.

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Definitions:

Variance

A measure of how much values in a dataset differ from the mean, indicating the distribution's spread.

Standard Deviation

The measure of the dispersion of a set of values relative to its mean, indicating how spread out the values are.

Standard Normal Curve

A bell-shaped curve that is symmetric about the mean, representing the distribution of a standard normal variable with a mean of zero and a variance of one.

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of all values by the count of the values.