ACCA · Question 8 · Pricing Decisions
Section A
PharmaLife has developed a revolutionary new drug that cures a rare disease. The drug is protected by a strict patent, and there are no competitors in the market. The company wishes to maximize its short-term profits to recover its massive R&D costs before the patent expires.
Which pricing strategy is most appropriate for PharmaLife?
Answer options:
Penetration pricing
Market skimming
Loss leader pricing
Marginal cost pricing
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