Correct Response: D. Inventory can be expensive. It costs money to store and manage goods, and inventory also represents a lot of non-liquid capital. A company with high product inventories would likely offer product discounts to customers to turn the inventory into revenues. A product that has little competition in the market (A) is more likely to be sold at higher prices to maximize profit. With development and production costs high, the opportunity to sell the product at a discount is less likely (B). Although a market differentiation strategy may highlight the unique features of the product, it would not necessarily be accompanied by a price reduction (C).
