True or False: Price skimming is when a marketer introduces a product into the market at an initially low price then incrementally raises the price over time.TrueFalse

What is price skimming?Select one:a. Setting prices based on a fixed markup percentageb.Setting prices below the actual cost of productionc.Setting prices based on customers' perceived value of the productd.Setting an initially high price and gradually lowering it over timeClear my choice

20.A cost incurred in the past that cannot be changed by any future actionis:a. Opportunity costb. Sunk costc. Relevant costd. Avoidable cost.21.What is price skimming?a. Setting an initially high price which falls as competitors enter themarketb. Setting a high price which consumers perceive as indicating highquality.c. Setting a low price to “skim off”a large number of consumersd. None of the above.22.Which of the following is also referred to as Markup pricing?a. Cost priceb. Cost plus pricingc. Marginal pricingd. Discount pricing23.The cost which is to be incurred beven when a business unit is closed is_________a. Imputed costb. Historical costc. Sunk costd. Shutdown cost24.McDonald’s restaurant loacted near the high school offered a Tuesdayspecial for high school students.If high school students showed their studentID cards,they would be given 50 percent off any medium combination meal.This practice is an example of :a. Collusionb. Price discriminationc. Two-part tariffd. Bundling25.When a firm charges each customer the maximum price that the customeris willing to pay,the firma. Enages in a discrete pricng startegyb. Charges the average reservation price.c. Engages in second –degree price discriminationd. Engages in first-degree price discrimination.

44.Setting a price below that of the competition is called:  A. Skimming.  B. Penetration pricing.  C. Competitive pricing.  D. Product pricing

Market skimming pricing would NOT be recommended when:Select one:a.more efficient competitors can enter the market easily.b.a high quality product is sold.c.the product has a prestige image.d.the firm has a new product that is patent protected.

The approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share is known as:  A. Market-skimming  B. Market-penetration  C. Below-market  D. Value-based