Question

Question
Which of the following best describes charging a high price to achieve the highest profit over a short time?
Responses

Market pricing
Market pricing

Skimming
Skimming

Penetration pricing
Penetration pricing

Circular pricing
Circular pricing

Answer 1

The response that best describes charging a high price to achieve the highest profit over a short time is **Skimming**. This pricing strategy involves setting high initial prices for a new or innovative product to maximize profits from customers willing to pay the high price before gradually lowering the price to attract more price-sensitive customers later.