The manufacturers of the early electric cars are charging relatively high prices to consumers who are willing to pay the price.They need to use a price skimming strategy because of

Question

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The high costs associated with producing a small volume of cars is the most likely reason why manufacturers of early electric cars are charging relatively high prices to consumers. These manufacturers may not have achieved economies of scale to bring down production costs. Therefore, by using a price skimming strategy, they can recover their production costs and make a profit.

The Manufacturers of the Early Electric Cars Are Charging Relatively