Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy.
A) penetration
B) bundling
C) skimming
D) cost-based

Question

Quizplus · Accepted Answer

Skimming is a pricing strategy where a high price is charged for a product during the initial stage of its launch when there is little competition. This allows the company to earn large profits and recover the high costs of research and development. As competition increases, the company may gradually lower the price to attract more customers.

Charging High Prices to Earn Large Profits During a Time