Which cost-based pricing method holds that a product's unit costs predictably decline by 10 to 30 percent each time the firm's production volume doubles?
A)experience curve pricing
B)cost-plus-fixed-fee pricing
C)cost-plus-percentage-of-cost pricing

Question

Quizplus · Accepted Answer

The pricing method described in the question is the experience curve pricing method. This method assumes that as production volume increases, the cost per unit of production decreases due to increased efficiency and economies of scale. This predicts that costs will decline by a predictable percentage each time the production volume doubles.

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