One disadvantage of using a penetration pricing policy is that the high unit profit margins will attract potential competitors into production of similar products.

Name: One disadvantage of using a penetration pricing policy is that the high unit profit margins will attract potential competitors into production of similar products.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

Penetration pricing has low profit margins on each unit sold.This is seen as an advantage because it discourages potential customers from entering the market.

One Disadvantage of Using a Penetration Pricing Policy Is That