Which of the Following Is True of Product Considerations in Pricing

question 49

Multiple Choice

Which of the following is true of product considerations in pricing?

• A) A penetration policy is generally used when the firm expects minimal competition for a product.
• B) A skimming policy is generally used when the firm expects competition to move in rapidly.
• C) A penetration policy cannot be used to obtain large economies of scale.
• D) A skimming policy is useful when demand for the product is price inelastic.

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Definitions:

Organic Product(s)

Chemical compounds and substances that are synthesized from organic molecules through various chemical reactions.

Reaction

A chemical process where substances interact to form new compounds or change into different substances, driven by the rearrangement of atomic bonds.

Organic Product

A compound containing carbon atoms bonded to other elements such as hydrogen, often produced through organic reactions.

Structure

The arrangement of atoms or molecules in a substance that defines its chemical and physical properties.