A new device "Sniffer",used for testing alcohol levels in drunken driving suspects,is priced out of the reach of most law enforcement units.Those units that have bought the Sniffer are extremely pleased with its results and the fact that these results are readily accepted in court.There is nothing on the market today that has the accuracy and the portability of the Sniffer.The manufacturer of the Sniffer is likely to be using a(n)_____ pricing policy.
A) penetration
B) odd-even
C) skimming
D) going-rate

Question

Quizplus · Accepted Answer

A skimming policy is one in which the seller charges a relatively high price on a new product. Generally, this policy is used when the firm has a temporary monopoly and when demand for the product is price inelastic.

A New Device "Sniffer",used for Testing Alcohol Levels in Drunken