Which of the following statements pertaining to a market skimming pricing strategy is not true?

Which of the following statements pertaining to a market skimming pricing strategy is not true?
A . The strategy is favored when unit costs fall with the increase in units produced.
B . The strategy is favored when buyers are relatively insensitive to price increases.
C . The strategy is favored when there is insufficient market capacity and competitors cannot increase market capacity.
D . The strategy is favored when high price is perceived as high quality.

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Answer: A