For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

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Quizplus · Accepted Answer

This statement is true. Market skimming involves charging higher prices for a product or service in order to create an image of exclusivity and appeal to a niche market. However, the costs of producing a smaller volume cannot be so high that they cancel out the advantage of charging more. Otherwise, the business may end up losing money, rather than benefiting from higher profit margins.

For Market Skimming to Be Successful, the Costs of Producing