Which of the Following Is a Major Disadvantage Associated with the Skimming

Multiple Choice

Which of the following is a major disadvantage associated with the skimming pricing strategy?

A) It is not effective for higher-end goods.
B) It is not effective in recovering the high research and development costs.
C) It attracts competition as potential competitors enter into the market observing the high financial returns obtained by innovative firms.
D) It leads to fulfillment problems if the demand for the product outstrips the firm's production capacity.