The price-skimming strategy is sometimes called a "market-plus" approach to pricing because it denotes a high price relative to the prices of competing products. When does this strategy work best?

a. when production capacity is large and flexible
b. when demand is greater than supply
c. when supply is greater than demand
d. when revenues are equal to expenses

Ans: b. when demand is greater than supply

Business

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What is the effect of freight-in on the cost-retail ratio when using the conventional retail method?

a. Increases the cost-retail ratio. b. No effect on the cost-retail ratio. c. Depends on the amount of the net markups. d. Decreases the cost-retail ratio.

Business

An indictment is a charge of guilt against the defendant

Indicate whether the statement is true or false

Business