--%>

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 : Objectives and importance of managerial

    What are the objectives and importance (Uses) of managerial Economics?

  • Q : Define Cost Volume-Profit relationship

    Describe briefly Cost Volume-Profit relationship?

  • Q : Human Capital and the Demand for Labor

    Investment in human capital is not essentially involved while: (w) people acquire and sharpen new productive skills. (x) a person attends college and learns engineering. (y) a person jogs to stay in shape. (z) the marginal productivity of labor increa

  • Q : Highest income of supply of labor This

    This worker’s weekly income in this demonstrated figure would be the highest at: (w) point a. (x) point b. (y) point c. (z) point d. How can I solve my Economics problem? Please suggest me the correct answer.

  • Q : Screening job hiring decisions The

    The concept that employers artificially utilize formal training and education while screening job applicants to make hiring decisions is termed as: (w) nepotism. (x) formalism. (y) human capital discrimination. (z) credentialism.

    Q : Explain Simultaneous equation method of

    Explain the Simultaneous equation method of Demand Forecasting.

  • Q : Additional wage-elastic of demand A

    A firm’s demand for labor tends to be additional wage-elastic while: (1) the price elasticity of demand for output is greater. (2) substituting capital for labor is harder. (3) unskilled workers join unions. (4) labor costs are

  • Q : Determine perfectly competitive firm

    When total variable cost exceeds total revenue whatever output levels but a perfectly competitive firm: w) must produce in the short run. x) is making short-run profits. y) must shut down in the short run. z) has shel

  • Q : States the Demand Forecasting in terms

    States the Demand Forecasting in terms of production?

  • Q : Illustrates the term Law of Demand

    Illustrates the term Law of Demand? Answer: The law of Demand is termed as the “first law in market”. It shows the relation in between quantity and price