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)All of these are examples of "cream skimming."

Question

Quizplus · Accepted Answer

Cream skimming refers to the practice of targeting the most profitable or high-paying customers while ignoring the less profitable or low-paying customers. Offering a reduced price to the best-paying customers of their competitors is an example of cream skimming because the focus is on obtaining the most profitable customers from competitors. The other options do not fit the definition of cream skimming.

An Example of "Cream Skimming" Is When