Which of the following would NOT support a market-skimming policy for a new product?

Which of the following would NOT support a market-skimming policy for a new product?



A) The product's quality and image must support its higher price.
B) Enough buyers must want the products at that price.
C) Competitors are not able to undercut the high price.
D) Competitors can enter the market easily.
E) The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.


Answer: D) Competitors can enter the market easily.


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