A firm has two products that must be used together.The firm sells one of the items at a very low price and profits from the sale of the second,high margin item.The firm is most likely using the ________ pricing strategy.
A) cross subsidy
B) market skimming
C) product positioning
D) market penetration

Question

Quizplus · Accepted Answer

This pricing strategy involves selling one item at a low price in order to attract customers and then making up for the low price by selling the second, complementary item at a higher margin. This allows the firm to make a profit overall while still being competitive in the market for the low-priced item.

A Firm Has Two Products That Must Be Used Together