A short-term tactic in which a company sets a high initial price for a product to recoup its investment is referred to as
A) cost-plus pricing.
B) value-based pricing.
C) price skimming.
D) target costing.
E) price penetration.

Question

Quizplus · Accepted Answer

Price skimming is a short-term tactic in which a company sets a high initial price for a product to recoup its investment. This pricing strategy is typically used for new and innovative products with little competition, allowing the company to generate high profits before competitors enter the market and drive down prices.

A Short-Term Tactic in Which a Company Sets a High