​Oscar Mayer Has Recently Developed a New Snack Product That's

question 46

Multiple Choice

​Oscar Mayer has recently developed a new snack product that's targeted to kids and young adults as a healthy,protein-based after-school or pre-dinner snack.They expect the product to complement their Lunchables product line and appeal to teen-age or college-age consumers who think of Lunchables as just for younger kids.In order to promote product trial and subsequent adoption,the company plans to use a relatively low entry price compared to the competition.What type of pricing strategy does Oscar Mayer plan to utilize?

• A)​penetration
• B)​everyday low pricing
• C)​skimming
• D)​competitive pricing

---

Definitions:

Nonexcludability

A characteristic of certain goods where it is difficult or impossible to prevent someone from using the good once it has been provided.

Optimal Quantity

The amount of a good or service that yields the maximum benefit or utility to the consumer or producer.

Marginal Cost

The cost of producing one additional unit of a good or service, important in making decisions about production levels and pricing.

Public Good

Goods or services that are non-excludable and non-rivalrous, meaning they can be used by many without diminishing availability to others.