A company that wishes to build its pricing strategy around the experience curve would be likely to ________.
A) price its products low
B) price its products high
C) engage in break-even pricing
D) all of the above
E) None of the above.

Question

Quizplus · Accepted Answer

The experience curve suggests that as a company gains experience in producing a product, its costs will decrease and it will become more efficient. As a result, a company that builds its pricing strategy around the experience curve would be likely to price its products low in order to attract more customers and gain more experience in producing the product. This will result in a lower cost per unit and a more competitive pricing strategy.

A Company That Wishes to Build Its Pricing Strategy Around