Which of the Following Statements About Penetration Pricing Is Most

question 329

Multiple Choice

Which of the following statements about penetration pricing is most accurate?

• A)Penetration pricing is a profit-oriented approach to pricing.
• B)Penetration pricing is a cost-oriented pricing method.
• C)Penetration pricing encourages competitors to enter a market.
• D)Penetration pricing is more effective in a marketplace with price-sensitive consumers.
• E)Penetration pricing usually precedes a skimming pricing.

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Definitions:

Tariff

A tax imposed by a government on imported goods or services to regulate trade and protect domestic industries.

Price of Wheat

The cost per unit of wheat, which can fluctuate based on factors like supply, demand, weather conditions, and global market dynamics.

World Price

The international market price of a good or service, influenced by global supply and demand.

Free Trade

An economic policy that allows imports and exports between countries without tariffs, quotas, or other restrictions.