Penetration pricing will most benefit a firm when:
A. customers in a market are very price-insensitive.
B. production costs are likely to increase with increasing volume.
C. the firm has a monopoly in a particular market.
D. it needs to set a low price in order to capture market share.
Answer:D
Penetration pricing will most benefit a firm when:
A. customers in a market are very price-insensitive. B. production costs are likely to increase with increasing volume. C. the firm has a monopoly in a particular market. D. it needs to set a low price in order to capture market share.