Price lining is a tactic used for new products and requires that prices be set very high to cover product development and introduction costs.

Question

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Price lining involves establishing a range of prices for a product line, with each price point reflecting a different level of quality or features. It is not necessary to set all of the prices very high, as the goal is to provide options for consumers at different price points. While there may be some costs associated with developing and introducing new products, this is not the primary goal of price lining.

Price Lining Is a Tactic Used for New Products and Requires