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PQ manufactures and sells consumer electronics. It is constantly working to design the latest gadgets and "must-haves" which are unique in the market place at the time they are launched. The management of PQ are aware of the short product life cycles in this competitive market and consequently use a market skimming pricing strategy at the introduction stage.
Required:
Explain the changes that are likely to occur in the following items at the three later stages in the product life cycle of a typical PQ product.
(i) Selling price
(ii) Production costs
(iii) Selling and marketing costs
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