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If a Market Penetration Pricing Strategy Results in Lower Per-Unit

Question 102

Multiple Choice

If a market penetration pricing strategy results in lower per-unit cost,competitors will be discouraged from entering the market because


A) selective consumer demand will increase gross profit margins.
B) a high / low cost-based pricing strategy will not work.
C) they would likely need to quickly produce a large volume in order to compete.
D) profits would increase too rapidly.
E) they will only be able to advertise in the same media as the firm using the market penetration strategy.

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