A potential disadvantage of this method

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Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

A potential disadvantage of this method is that the low profit margins may not be sustainable long enough for the strategy to the effective'.

The above stanza is talking about which pricing method's disadvantage.

Options:

Variable Price Method

Cost Plus Pricing Method

Penetrating Price Method

Creaming Price Method

Correct Answer:

Penetrating Price Method

Explanation:

The correct answer is option (3) - Penetrating Price Method