Final answer:
A rise in input prices is not a favorable condition for implementing skim pricing because it could lead to decreased profitability, making it harder to maintain high margins needed for the effectiveness of the strategy.
Step-by-step explanation:
The question pertains to conditions that are unfavorable for implementing a skim pricing strategy. Skim pricing, also known as price skimming, involves setting a high price for a new product during its introductory phase to maximize revenue from segments of the market willing to pay the high price. Eventually, the price is gradually lowered to attract additional segments of the market.
Among the listed conditions, a rise in input prices is NOT favorable for implementing skim pricing. This is because with increased costs, maintaining high margins becomes more difficult, which could compromise the effectiveness of a skim pricing strategy. A business is less likely to adopt this pricing approach if it faces input pressures that reduce potential profits.