What Is One of the Drawbacks of Using a Price

Multiple Choice

What is one of the drawbacks of using a price skimming strategy?

A) It is difficult to lower prices on an introductory product.
B) Price skimming allows competitors to easily enter the market.
C) Firms must consider the high costs associated with producing a small volume of product.
D) Price skimming does not work well with new-to-the-market, innovative products.
E) Price skimming is often challenged as being illegal.