To take advantage of a downward-sloping experience curve, a company must do all of the following EXCEPT ________.
A) increase the product's price
B) be able to sell the higher volume of product
C) price its product lower
D) increase its production output
E) decrease its costs through experience gained

Question

Quizplus · Accepted Answer

To take advantage of the downward-sloping experience curve, a company must price its product lower, increase its production output, and decrease its costs through experience gained. Increasing the product's price would result in a decrease in demand, which would not be beneficial for taking advantage of the experience curve.

To Take Advantage of a Downward-Sloping Experience Curve, a Company