To assist in achieving the cost reduction related to the learning curve, firms should:
A)Set price on the basis of anticipated costs rather than on the basis of current costs
B)Set price on the basis of current costs rather than on the basis of anticipated costs
C)Integrate fixed costs in their calculation
D)Only price at the correct level

Question

Quizplus · Accepted Answer

Setting price on the basis of anticipated costs allows firms to take into account the expected cost reductions associated with the learning curve. This can help them to achieve cost savings and more accurately predict their pricing strategy in the long run.

To Assist in Achieving the Cost Reduction Related to the Learning