All of the Following Are True About a Skimming Pricing

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle EXCEPT:

A) it capitalizes on the price insensitivity of early buyers.
B) its profit margins may be high.
C) it encourages competitive entrants into the market.
D) it recovers the R&D costs of the new offering.
E) it helps build unit volume