When skimming pricing is adopted for a new product,it will likely generate early profits.But the early profits will entice competitors to enter the market.

Question

Quizplus · Accepted Answer

Skimming pricing involves setting high initial prices to "skim" revenue layers from the market. The high profit margins can indeed attract competitors, who see the lucrative market as an opportunity.

When Skimming Pricing Is Adopted for a New Product,it Will