A firm that successfully pursues a steeper-than-industry-average learning curve and manages costs down may still fail if, by underestimating a strong competitor, it fails to gain the added volume necessary for the learning curve to exist.

Question

Quizplus · Accepted Answer

Even if a firm successfully reduces costs through a steeper learning curve, if it underestimates a strong competitor and fails to gain the necessary volume, it may still fail.

A Firm That Successfully Pursues a Steeper-Than-Industry-Average Learning Curve and Manages