Which pricing policy is probably best for a profit-oriented,low-cost producer who is introducing a new product into a market with elastic demand and is expecting strong competition very soon after product introduction?
A)skimming price
B)introductory price dealing
C)meeting competition pricing
D)penetration pricing
E)status quo pricing

Question

Quizplus · Accepted Answer

A penetration pricing policy tries to sell the whole market at one low price when the whole demand curve is fairly elastic and the firm expects strong competition very soon after introduction.

Which Pricing Policy Is Probably Best for a Profit-Oriented,low-Cost Producer