A(n)_____ price strategy is a short-run strategy that prices goods to cover variable costs and some fixed costs,and it is used by firms in industries plagued with intense price competition.
A) market skimming
B) penetration
C) survival
D) economy

Question

Quizplus · Accepted Answer

Survival pricing is a short-term pricing strategy used by firms facing intense price competition. This strategy involves setting prices low enough to cover variable costs and some fixed costs, with the goal of simply staying afloat in the market. Market skimming and penetration pricing are long-term strategies used to gain market share or maximize profits, while economy pricing involves reducing costs and passing the savings on to customers.

A(n)_____ Price Strategy Is a Short-Run Strategy That Prices Goods