A firm would move down the experience curve if it:

Question

Quizplus · Accepted Answer

Because global markets are larger than domestic markets,a firm that serves a global market from a single location is likely to build accumulated volume more quickly than a firm that serves only its home market or that serves multiple markets from multiple production locations.To get down the experience curve rapidly,a firm may need to price and market aggressively so demand will expand rapidly.The cost advantages of serving the world market from a single location will be even more significant if that location is the optimal one for performing the particular value creation activity.

A Firm Would Move Down the Experience Curve If It