According to lecture, with penetration pricing we will get a large share of the market quickly. This means that (i) our per unit production costs drop quickly and (ii) ________________________.

According to lecture, with penetration pricing we will get a large share of the market quickly. This means that (i) our per unit production costs drop quickly and (ii) ________________________.



a.

our demand is inelastic.

b.

our customers care about prestige.

c.

our competitors will be encouraged to enter our market.

d.

with high volume of sales we will generate a good profit.

e.

Actually, all of these would apply



Answer: with high volume of sales we will generate a good profit.


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