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If firms wish to maximize their market share, they should opt for market-skimming pricing.

a) true
b) false

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Final answer:

The statement is false. If firms wish to maximize market share, they would likely choose a penetration pricing strategy, not market-skimming pricing.

Step-by-step explanation:

If firms wish to maximize their market share, they should opt for market-skimming pricing. The statement is false. Market-skimming pricing, also known as price skimming, involves setting a high price for a new product initially and then gradually lowering the price over time. This strategy is typically used to maximize profits in the early stages of a product's life cycle when it is novel and competition is limited, rather than to increase market share.

In contrast, if a firm's goal is to maximize market share, it would likely opt for a penetration pricing strategy. This involves setting a low initial price to attract a large number of customers and achieve a high sales volume, which can lead to a significant market share. Penetration pricing can deter competition and quickly establish the firm's product in the market.

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