When a firm sets a price relatively low in order to increase the market share,it is referred as
A)price skimming.
B)limit pricing.
C)penetration pricing.
D)predatory pricing.

Question

Quizplus · Accepted Answer

Penetration pricing is the strategy of offering a low price to attract customers and gain market share. This can lead to increased sales volume and can help the company establish itself in the market.

When a Firm Sets a Price Relatively Low in Order