Which of the following would NOT support a market-skimming policy for a new product?
A)The product's quality and image must support its higher price.
B)Enough buyers must want the product at that price.
C)Competitors are not able to undercut the high price.
D)Competitors can enter the market easily.
E)The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.

Question

Quizplus · Accepted Answer

A market-skimming policy involves charging a high price for a new product to maximize profits from early adopters. However, if competitors can enter the market easily, they may offer similar products at lower prices, negating the advantage of a higher price for the new product. Thus, if competitors can easily undercut the high price, it would not support a market-skimming policy.

Which of the Following Would NOT Support a Market-Skimming Policy