A(n) _____ price strategy prices goods to cover variable costs and some fixed costs.
A) market skimming
B) penetration
C) survival
D) economy

Question

Quizplus · Accepted Answer

A survival price strategy is designed to cover variable costs and some fixed costs, with the goal of simply keeping the business afloat rather than maximizing profits. This strategy is often used by businesses that are struggling financially, in order to generate enough revenue to stay in operation. Market skimming and penetration strategies are focused on building market share and maximizing profits, while an economy strategy is designed to offer low prices to consumers by cutting costs wherever possible.

A(n) _____ Price Strategy Prices Goods to Cover Variable Costs