The Price-Skimming Strategy Is Sometimes Called a "Market-Plus" Approach to Pricing

Multiple Choice

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