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When StarSignal Introduced Its Fax Machine for Receiving and Sending

Question 3

Multiple Choice

When StarSignal introduced its fax machine for receiving and sending color documents, it charged $26,000-a lot more than fax machines usually cost. More than likely, StarSignal was trying to recoup its product development costs by using _____ pricing.


A) market-skimming
B) market-absorption
C) market-penetration
D) cost-plus
E) value-set

Correct Answer:

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