Gillette invented the safety razor. When they decided to sell the safety razor at a low price then charge higher prices for replacement blades, they created a new business model called:.

razor-razorblade model

Explanation:

Condeong the scenario described in the question above, the right answer is "Razor-Razorblade Model"

The Razor-Razorblade model is sometimes referred to as the razor and blades business model. It is a form of pricing technique employed by producers whereby a dependent commodity is sold at a loss to the producer while the paired consumable good is sold for higher profits.

The purpose of using this pricing technique is to draw the customers closer with a dependent good which is cheaper. Then, making the expected profit from the commentary goods that essential to the dependent good.

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