Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:

Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:

Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial  reduction in production costs as volume expands. While the market is quite large, there is a strong threat  of imminent competition. The firm should likely use:





a. product differentiation.

b. a skimming approach to pricing.

c. a penetration approach to pricing.

d. a bid price policy.

e. a life cycle costing pricing policy.




Answer: C


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