In Order to Recover Research and Development Costs Rapidly and Earn

question 115

Multiple Choice

In order to recover research and development costs rapidly and earn high initial profits, SenseTV is setting a high price for its plasma TVs. The pricing strategy SenseTV is using is called _____ pricing strategy.

• A) market-minus
• B) skimming
• C) penetration
• D) competitive

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by changes in real GDP.

Population Decline

A decrease in the number of people in a population due to factors such as lower birth rates, higher death rates, or migration.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the development of innovations.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the hours worked to produce them.