A shortage of blood for transfusions for injured animals has resulted in the introduction of a synthesized product called Oxyglobin, which can be used effectively as a blood replacement. The manufacturer of the product has put a high price on the product in order to recoup its research and development costs. Which type of policy is the manufacturer of Oxyglobin using?

Question

Quizplus · Accepted Answer

The manufacturer of Oxyglobin is using price skimming policy. This policy involves setting a high price for a new product in order to recoup the costs of research and development. As the product gains wider acceptance in the market or competition enters the market, the price may be lowered.

A Shortage of Blood for Transfusions for Injured Animals Has