Which of the following statements regarding pricing constraints is most accurate?
A) When a product is in the introductory stage of the product life cycle, the initial price must be low since consumers still don't know what the product can really do.
B) Patents and limited competition earlier in the life cycle mean that higher prices can usually be charged.
C) The greater the number of products in a company's product line, the less the product features of similar products can affect price.
D) The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
E) To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

Question

Quizplus · Accepted Answer

Patents and limited competition allow companies to charge higher prices due to the lack of alternative options for consumers and the protection of intellectual property.

Which of the Following Statements Regarding Pricing Constraints Is Most