A) 1 to 2

question 60

Multiple Choice

• A) 1 to 2.
• B) 3 to 2.
• C) 2 to 1.
• D) 2 to 3.

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Definitions:

Penetration Pricing

A pricing strategy that involves setting a low price for a new product in order to attract customers and gain market share quickly.

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period.

Initial Price

The original cost or price of a good or service when it is first offered for sale, often used as a baseline for pricing strategies.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, used to cover fixed costs and contribute to profit.