Which cost-oriented pricing method holds that a product's unit costs predictably decline by 10 to 30 percent each time its production volume doubles?
A) experience curve pricing
B) cost-plus percentage-of-cost pricing
C) cost-plus fixed-fee pricing
D) standard markup pricing
E) derived demand pricing

Question

Quizplus · Accepted Answer

This cost-oriented pricing method is known as experience curve pricing, which states that a product's unit costs will decrease by 10 to 30 percent each time its production volume doubles due to increased experience and efficiency in production.

Which Cost-Oriented Pricing Method Holds That a Product's Unit Costs