Which of the following statements is false?
A) When demand is inelastic, a price increase will have little effect on the number of units sold.
B) An increase in variable costs will increase the profit-maximizing selling price.
C) Penetration pricing is illegal.
D) Kaizen costing is a continuous improvement process that decreases waste and increases production efficiency.

Question

Quizplus · Accepted Answer

Penetration pricing is not illegal; it is a legitimate pricing strategy used to gain market share by setting a low initial price.

Which of the Following Statements Is False