Panascope manufactures high-definition TVs (HDTVs).It costs Panascope $1,500 to produce one HDTV.Panascope,planning to "make hay while the sun shines" has priced its HDTVs at $12,000.This is an example of which pricing strategy?

Question

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Price skimming is a pricing strategy where a high price is set for a product initially with the intention of reducing it over time. This strategy is commonly used to recover high initial costs such as research and development or manufacturing. Panascope's pricing strategy of setting a high initial price of $12,000 for its HDTVs, which costs $1,500 to produce, can be considered as price skimming.

Panascope Manufactures High-Definition TVs (HDTVs)