A firm is using ________ when it charges a high price for a new product with the intention of maximizing revenue.
A) a skimming price
B) trial pricing
C) loss leader pricing
D) penetration pricing
E) promotion pricing

Question

Quizplus · Accepted Answer

A skimming price is when a firm charges a high price for a new product with the intention of maximizing revenue. This is because the high price attracts early adopters and customers willing to pay a premium price for the novelty of the product. As demand begins to level off, the firm can then lower the price to attract more price-sensitive customers.

A Firm Is Using ________ When It Charges a High