Which of the Following Is Correct with Regard to the Pricing

question 168

Multiple Choice

Which of the following is correct with regard to the pricing of existing and new products?

• A) Price skimming is generally most effective for consumer goods,but penetration pricing is generally most effective for industrial goods.
• B) The penetration pricing option is generally most effective for both consumer and industrial goods.
• C) In the car rental business,setting prices below the market generally works best.
• D) Penetration pricing is generally superior to a skimming strategy for new products.
• E) None of these.

---

Definitions:

SUTA Tax

A state-level tax that employers pay to fund their state's unemployment benefits programs, with rates and wage bases that can vary by state.

FUTA Tax

A federal tax in the United States paid by employers to fund unemployment benefits.

Employer's Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, including Social Security, Medicare, and unemployment taxes.

Accrued Vacation Privileges

Employee benefits that accumulate over time, referring to the right to take paid time off that's been earned but not yet used.