A price-skimming strategy assumes that:
A) the firm cannot recover the high costs of R&D.
B) the product is efficient.
C) it will be difficult to recoup development costs.
D) all consumers have homogeneous tastes.
E) the initial demand is highly inelastic.

Question

Quizplus · Accepted Answer

Price-skimming involves setting high initial prices to maximize profits from consumers willing to pay more, assuming that initial demand is inelastic.

A Price-Skimming Strategy Assumes That