To accomplish the goals of maximizing short- or long-run profits and to quickly recover development costs, which of the following is an appropriate strategy?

Question

Quizplus · Accepted Answer

Price skimming is an appropriate strategy for maximizing short- or long-run profits and quickly recovering development costs. It involves setting high prices initially and then gradually lowering them over time. This approach is often used for new and innovative products, allowing companies to capitalize on the willingness of early adopters to pay a premium before adjusting prices to attract a broader customer base.

To Accomplish the Goals of Maximizing Short- or Long-Run Profits