--%>

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 : Succeed and surviving of a cartels A

    A cartel is more likely to succeed and survive when: (w) members respond to incentives to cheat. (x) fringe producers are not members. (y) total market demand is less elastic. (z) close substitute goods are simply developed.

    Q : Government and Labor Assume that male

    Assume that male nurses are paid more than female nurses for same work. When an “equal pay for equal work” law is enforced and enacted, it may: (w) decrease the wages of male nurses. (x) not influence the wages of female nurses. (y) increa

  • Q : Objectives ans uses Help to achive the

    Help to achive the other objectives of the firm like industry leadership,expansion implementation of policies

  • Q : Illustrates the term shot run

    Illustrates the term shot run production function?

  • Q : Learning-by-doing Firms may make use of

    Firms may make use of low prices to enter a market and gain market share therefore is can learn the intricacies of a particular product line or business. It is an illustration of: (1) limit pricing. (2) accommodation. (3) learning-by-

  • Q : Income and Substitution Effects When

    When the income effect of a higher wage rate is extremely powerful in that case the substitution effect, the: (1) supply curve of labor will be positively sloped. (2) demand for leisure increases like income rises. (3) human capital effect is stronger

  • Q : Illustrates the term variable cost

    Illustrates the term variable cost?

  • 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 : Determine marginal resource cost of

    If hiring hundred extra workers increases the firms total cost through $10,000, and each extra worker increases output from 50 units, in that case on the average: (w) profit will fall by $10,000. (x) the value of the marginal product of labor is $10,0

  • Q : Earning price in Human capital As per

    As per shown in this graph, the average high school graduate will earn around: (1) $12,000 yearly. (2) $20,000 yearly. (3) $45,000 yearly. (4) $90,000 yearly. (5) $100,000 yearly.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1458646 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1950850
    Asked

    3,689

    Active Tutors

    1458646

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.