When a downward- sloping experience curve exists,a company should usually the selling price of that product in order to bring in higher revenues.
A)level
B)greatly increase
C)not alter
D)decrease
E)increase

Question

Quizplus · Accepted Answer

A downward-sloping experience curve means that as production volume increases, the cost of producing a unit decreases. Therefore, a company should decrease the selling price of the product in order to stimulate demand and sell more units at a higher volume, thus taking advantage of the lower cost per unit. This strategy can result in higher revenues overall.

When a Downward- Sloping Experience Curve Exists,a Company Should Usually