When the Mosquito Magnet Was Introduced,it Was Designed to Rid

question 32

Multiple Choice

When the Mosquito Magnet was introduced,it was designed to rid the immediate area of mosquitoes and other annoying insects.The technology for the Mosquito Magnet took years to develop.It is a patented grill-like apparatus that emits carbon dioxide to attract bugs to a fan,which draws them into the device where they die.What type of pricing policy would you have recommended the company use to introduce this product to the market?

• A) price skimming
• B) leader pricing
• C) penetration pricing
• D) status quo pricing

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Price Discrimination

A pricing strategy where identical or substantially similar products or services are sold at different prices by the same provider in different markets.

Senior Citizen Discounts

Price reductions or special offers given to elderly consumers, typically those aged 65 and older, as a form of financial relief or incentive.

Economic Profits

The surplus left after deducting all costs, including opportunity costs, from a firm's total revenues, indicating the efficiency of resource allocation.