The following circumstances may arise in relation to the launch of a new product:

(i) Demand is relatively inelastic
(ii) There are significant economies of scale
(iii) The firm wishes to discourage new entrants to the market
(iv) The product life cycle is particularly short

Which of the above circumstances favour a penetration pricing policy?

A. (ii) and (iii) only
B. (ii) and (iv)
C. (i), (ii) and (iii)
D. (ii), (iii) and (iv) only