What Is Meant by Market Skimming

question 6

Multiple Choice

What is meant by market skimming?

• A) The strategy of setting a higher price for a good than for close substitutes of the good, based on product differentiation.
• B) The strategy of combining several products in the market such that the consumer cannot buy the goods individually.
• C) The strategy of setting a price that is lower than the current market price in order to undercut competing firms.
• D) The strategy of setting a higher price for a good when it is first introduced in the market and then gradually lowering the price.
• E) The strategy of setting a low price in order to induce consumers to buy the good and then consequently increasing the price.

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Definitions:

Asian Carp

Invasive fish species native to Asia, known for rapidly populating and disrupting ecosystems in US rivers and lakes.

Kudzu Vine

A fast-growing climbing plant, introduced from Asia to North America, often considered invasive due to its smothering growth.

Canadian Rockies

A major mountain range in western Canada known for its breathtaking scenery and outdoor recreational opportunities.

Cutthroat Trout

A species of freshwater fish, known for the distinctive red or orange cutthroat mark beneath its jaw.