--%>
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 : Recession - Phases of business cycle

    Describe about the term Boom in phases of business cycle.

    		•
  • Q : Functions and Responsibilities of

    What are the Functions and Responsibilities of managerial economist?

    		•
  • Q : Use of Screening and Credentialism

    Critics of the wide use of screening and signaling within hiring practices argue which: (w) formal training is never very important in preparing workers with necessary skills. (x) worker credentials tend to be negatively related to productivity. (y) l

    		•
  • Q : Unitarily inelastic supply of labor

    Glynn’s supply of labor is unitarily inelastic while the wage rate increases by: (1) $10 per hour to $20 per hour. (2) $10 per hour to $50 per hour. (3) $20 per hour to $50 per hour. (4) $20 per hour to $80 per hour. (5) $80 per hour to $90 per

    		•
  • Q : Difference between average cost and

    What are the difference between average cost and total fixed cost?

    		•
  • Q : Derived Demand for Labor All else

    All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training

    		•
  • Q : Problem on Occupational Crowding After

    After vacationing hundreds of restaurants, then a restaurant critic has concluded which in almost all the workers who clear tables and also wash dishes appear to be illegal aliens by Mexico. The critic has observed a phenomenon termed as: (1) marginalized labor. (2) t

    		•
  • Q : Which term not used to calculate

    The entire given can be used to calculate average profit except: w) marginal profit minus marginal cost. x) total profit divided by quantity. y) average revenue minus average total cost. z) price minus average total cost.

  • Q : Explain short term Demand forecasting

    Explain short term Demand forecasting.

    		•
  • Q : Explain the Expenditure Method of

    Explain the Expenditure Method of Measurement of Elasticity.

    		•