During the innovative firm's monopoly period, a _____ is optimal if there is a relatively high repeat purchase rate for nondurable goods or if a durable good's demand is characterized by diffusion.

Question

Quizplus · Accepted Answer

A penetration policy is optimal in such cases because it involves setting a low initial price to encourage widespread adoption and repeat purchases, which is effective when there is a high repeat purchase rate or when demand is characterized by diffusion.

During the Innovative Firm's Monopoly Period, a _____ Is Optimal