Trying to Get the "Cream" of a Market (I

question 98

Multiple Choice

Trying to get the "cream" of a market (i.e., the top of a demand curve) at a high price before aiming at the more price-sensitive customers is consistent with a(an) :

• A) flexible-price policy.
• B) sales-oriented pricing policy.
• C) skimming pricing policy.
• D) introductory price dealing policy.
• E) penetration pricing policy.

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Definitions:

Diminishing Marginal Product

The property whereby the marginal product of an input declines as the quantity of the input increases.

Production Function

An equation that describes the relationship between the inputs a firm uses and the output it produces.

Computer Programmers

Individuals who write, test, and maintain the code that allows computer applications and software programs to function properly.

Computer Software

Programs and operating information used by a computer to perform specific tasks or functions.