Unilever Is Introducing a New Brand of Car Window Cleaner

question 150

Multiple Choice

Unilever is introducing a new brand of car window cleaner in market maturity. To speed its entry into the market-without encouraging price competition-Unilever should use:

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

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Definitions:

Entire Incomes

The total earnings received by an individual or household from various sources, including wages, salaries, and investments.

Cobb-Douglas Utility

A form of utility function that represents preferences with a particular functional form, often used in economics to model production and utility with inputs or goods raised to constant powers.

Quasilinear Utility

A utility function where the utility is linear in one argument, typically representing money, allowing for the analysis of changes in wealth without the utility of wealth itself changing.

Consumption Increase

A rise in the amount of goods and services consumed by households or the economy over a period.