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Lera25 [3.4K]
3 years ago
12

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the _____

___ pricing strategy.market-penetrationcompetitivecost-plusmarket-skimmingmarket-segmentation
Business
2 answers:
bazaltina [42]3 years ago
8 0

Answer:

Market Skimming

Explanation:

Market skimming is a pricing technique whereby producers and organizations set high introductory prices in order to attract buyers with strong affinity for the products and who possess the resources to buy it, Then over time continue to gradually reduce to products so others in the market could afford it. It is also known as price skimming, involves setting high prices for a product just launched in the market. A highly selective market is where techniques like this thrives.

omeli [17]3 years ago
8 0

Answer:

The answer is Market-skimming

Explanation: Market Skimming refers to a pricing approach whereby the manufacturer of a product or service sets a high introductory price in order to attract buyers who have a strong desire for the product and who possess the resources needed to purchase the products or services, this pricing strategy is implemented with the intention that it will gradually be reduced in order to attract the next and subsequent layers of the market.

Examples of implementation of market skimming strategies include; Apple iPhone and other products, Sony PlayStation 5, etc.

Advantages of Market skimming include:

- Helps to build a high-quality image and perception of the product.

- Helps in cost recuperation, meaning that It helps a firm quickly recover its costs of development.

-High profitability, this means that it helps to generates a high profit margin for the company.

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Answer:

Net worth is the measure of the wealth of an entity, person, or corporation, as well as sectors and countries. Simply, net worth is defined as the difference between assets and liabilities. It is an important metric to gauge a company's health and it provides a snapshot of the firm's current financial position.

8 0
3 years ago
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3 0
3 years ago
Ben and John formed BCD Inc., a corporation, in 2013. Ben received 80% of the voting common stock, the only class of stock and J
Lady_Fox [76]

Answer:

Gain recognized by Ben = $10,000

Explanation:

Given Data:

Adjusted basis of property=$40000

Cash received =  $15000

Additional stock received = $35000

Total received =  Cash received + Additional stock received

                        = $35000 + $15000

                        = $50000

 Gain recognized by Ben = Total received - Adjusted basis of property

                                          =$50,000  -$40,000

                                        = $10,000

Therefore, gain recognized by Ben  = $10,000

8 0
2 years ago
Common Stock is 2.5 million shares with a current price of $42 per share; the beta of the stock is 1.34; the standard deviation
Kamila [148]

Answer:

the firm's cost of equity is 17.808%

Explanation:

A firm's cost of equity is the return expected by holders of Common Stock.

The Data available allows us to use the Capital Asset Pricing Model (CAPM) to determine the cost of Equity.

Cost of Equity = Risk Free Rate + Company`s Beta × Expected Return on Market Portfolio

                       = 2.8%+1.34×11.2%

                       = 17.808%

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3 years ago
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Explanation: They do not have any legal reason to stop it, it is part of her right as a worker.

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2 years ago
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