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What Results Can Be Expected If Trimar Videos Uses a Price-Skimming

Question 24

Multiple Choice

What results can be expected if Trimar Videos uses a price-skimming strategy to price its video equipment?


A) It may allow the firm to earn a large profit on each unit of sales of the product.
B) It will generate a lot of trial purchases of the product.
C) It will generate a lot of consumer interest.
D) It permits the firm to gain entrance to a market and then later adjust the price to a more realistic figure.
E) It will result in price-fixing charges by the government.

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