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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