Answer:
B) production and distribution costs fall with accumulated production experience
Step-by-step explanation:
A low price may slow down market growth. However, it cannot occur in the market penetration strategy because a market penetration strategy lowers the price to attract customers in a discouraging competitive market. Therefore, option "A" and option "E" is incorrect. As the penetration strategy offers a lower price, therefore, the higher price is nowhere near the option, so "C" is not correct. As the price is low, customers want to buy more, and it is not an inelastic demand. Therefore, the option "D" is wrong also.
As penetration strategy produces the products at a lower price, they can offer low selling prices. It can only happen due to the higher production experience. So, "B" is the right choice.