A firm with inelastic consumer demand and patent protection should utilize
A) a penetration price strategy.
B) a skimmimg price strategy.
C) subjective pricing.
D) market-driven pricing.

Question

Quizplus · Accepted Answer

A skimming price strategy is used when a firm has inelastic consumer demand and patent protection. This allows the firm to charge a high price for its product, as consumers are willing to pay more for the product due to its unique features and lack of competition.

A Firm with Inelastic Consumer Demand and Patent Protection Should