An example of "cream skimming" is when:
A)a firm charges the same price to all consumers, even though costs for some are higher
B)a firm offers a reduced price to the best-paying customers of their competitors
C)a firm offers a reduction in price on a package sale of two items
D)none of these

Question

An example of "cream skimming" is when:
A)a firm charges the same price to all consumers, even though costs for some are higher 
B)​a firm offers a reduced price to the best-paying customers of their competitors 
C)​a firm offers a reduction in price on a package sale of two items 
D)​none of these

Quizplus · Accepted Answer

Cream skimming refers to the practice of targeting the most profitable customers while excluding less profitable ones. Option B fits this definition as the firm is targeting the best-paying customers of their competitors to gain more profit. Option A is not a cream skimming example as the firm is not targeting the most profitable customers, and option C is not an example of cream skimming either as it involves a package sale discount rather than targeting profitable customers. Option D is incorrect as there is at least one correct answer.

An Example of "Cream Skimming" Is When