(Solved): If a penetration pricing strategy results in lower per-unit cost, competitors might be discouraged f ...

If a penetration pricing strategy results in lower per-unit cost, competitors might be discouraged from entering the market becal Multiple Choice they would be able to advertise only to the same target market as the firm that introduced the original product. a high/low cost-based pricing strategy will not work. selective consumer demand will increase gross profit margins. profits would increase too rapidly.