--%>
Assignment Help - homework help

Illustrates the reasons for charging skimming price strategy

Illustrates the reasons for charging skimming price strategy?

E

Expert

Verified

Reasons for charging Skimming price strategy are as follows:

1. While the demand of new product is relatively inelastic.

2. While there are no close substitutes

3. Elasticity of demand is not identified.

4. While the buyers are not capable to compare the value and utility.

5. For attracting the high income customers.

6. For recovering early the R and D and promotional expenses.

7. When the product has distinctive qualities and luxuries.

   Related Questions in Managerial Economics

  • Q : Illustrates the factors affecting

    Illustrates the factors affecting Demand Forecasting?

    		•
  • Q : Factors governing prices and pricing

    Illustrates the factors governing prices and pricing decision in briefly?

    		•
  • Q : Equilibrium prices and quantities

    French toast and pancakes and both are close substitutes. Assume that good weather yields a bumper crop of pancakes and decreases the price of pancakes. Into the market for French toast: (1) equilibrium price and quantity both increase.(2) competition increases the su

    		•
  • Q : Increment in demand raises the

    An increase within the demand for Swiss cheese will absolutely raise the equilibrium as:  (w) price when the supply of Swiss cheese shrinks over the same period. (x) quantity when the supply of cheese shrinks during the same peri

    		•
  • Q : Accurate ranking in most elastic labor

    When we try to list labor supplies from least elastic to most elastic, in that case the most accurate ranking would most likely be: (1) competitive firm, minute industry, highly skilled occupation. (2) economy, skilled occupation, competitive firm wit

    		•
  • Q : What did professor Hidbon illustrates

    What did professor Hidbon illustrates about Demand?

    		•
  • Q : Making a decision regarding resource

    To make a decision regarding resource hire, the firm should take as: (w) the price of the resource. (x) the productivity (Marginal Price) of the resource. (y) output prices. (z) All of the above. How can I solve my Economic

    		•
  • Q : Wage Rates and Marginal Resource Costs

    When all markets wherein a firm operates are purely competitive, in equilibrium the marginal resource cost of labor is the same to the: (w) firm’s marginal revenue. (x) marginal cost of output. (y) wage rate the firm must pay to hire more worker

    		•
  • Q : Technology advances in Economic Growth

    Can someone help me in finding out the right answer from the given options. The production possibilities frontier enlarges if: (i) The economy approaches full and proficient employment. (ii) Technology progress. (iii) Society's net demand for output i

    		•
  • Q : What is Scarcity Definition of economics

    What is Scarcity Definition of economics?

    		•