PRC-3 · Chapter 7 · Question 58 of 72
A company invents a cure for a rare disease and initially sets the price extremely high to maximize profits from early adopters before competitors can create a generic version. This pricing strategy is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Price skimming
Explanation
Price skimming involves setting a high initial price for a highly desirable new product to maximize short-term profit before competition forces the price down.
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