A firm requires funds for further expansion and has excellent patent protection. A suitable new-product pricing strategy is
A) price lining.
B) flexible pricing.
C) penetration pricing.
D) skimming pricing.

Question

Quizplus · Accepted Answer

Skimming pricing is suitable for a firm with excellent patent protection looking to expand. This strategy involves setting high initial prices to "skim" revenue layers from the market, capitalizing on the lack of competition due to the patent protection.

A Firm Requires Funds for Further Expansion and Has Excellent