College

When a company sets a high price for the introduction of a new product, it is using which type of pricing?

A. Negotiated pricing
B. Price skimming
C. Penetration pricing
D. Bundle pricing

Answer :

Final answer:

Price skimming


Explanation:

When a company sets a high price for the introduction of a new product, it is using price skimming pricing. Price skimming involves setting a high initial price for a new product or service and then gradually lowering the price over time. This strategy is often used for innovative products with limited competition and allows the company to maximize revenue from early adopters before attracting price-sensitive customers.


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