Assertion (A) : Low initial price regarded as the principal means for entering into mass market for some new products.

Reasoning (R) : Firms generally enter into production of new products with excess capacity of the plant initially.

  • A

    (A) is correct but (R) is not correct.    

  • B

    (A) is not correct but (R) is correct.

  • C

    (A) and (R) both are correct and (R) is right explanation of (A).

  • D

    (A) and (R) both are correct but (R) is not right explanation of (A).