A Producer Might Use a "Pulling Policy" Rather Than a "Pushing

question 296

Multiple Choice

A producer might use a "pulling policy" rather than a "pushing policy" if:

• A) intermediaries are reluctant to handle a new product.
• B) it is offering a very "high-tech" product to a small product-market.
• C) its sales force has been very successful getting wholesalers and retailers to handle its product.
• D) it has a very limited promotion budget.
• E) All of these alternatives are correct.

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Definitions:

Marginal Cost

The growth in complete cost caused by the manufacture of one more unit of a good or service.

Artificially Scarce Good

A product or service whose availability is limited due to artificial constraints, such as legal restrictions or monopolistic practices, rather than natural scarcities.

Competitive Market

A market structure where many firms offer products or services that are similar, allowing consumers to find substitutes easily.

Efficient Price

A market price that reflects all available information and results in an allocation of resources that maximizes overall utility.