After studying the chapter demand and pricing strategy i have some doubts : please make it clear sir, 1)inorder to maximise the shorterm profitability price skimming or penetration is good ? 2) inorder to achieve break even sooner price skimming is good policy ryt ?
There is no precise answer – it depend on the actual costs and prices (and how short a term). However price skimming is more likely to maximise short-term profitability and to break even sooner.