Answer:
The answer is E
Explanation:
Market penetration pricing is when companies deliberately set lower prices than that prevailing in the market or that of the competitors. This in turn gives a a competitive edge to the companies as they attract larger market shares.
This also discourages new firms from entering the market as it is unlikely they can offer these lower profits.
With market penetration pricing, companies can opt for prices as low as they only allow to break even or even make a short term loss, all this is for a long term larger market share.
