retail price of a mobile phone (unsubsidized)has decreased from $4,000 in 1983 when Motorola commercialized the device to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?
A) skimming pricing
B) prestige pricing
C) experience curve pricing
D) odd-even pricing
E) customary pricing

Question

Quizplus · Accepted Answer

The decrease in retail price due to the increase in volume sold suggests the use of experience curve pricing, which involves reducing costs as production volumes increase.

Retail Price of a Mobile Phone (Unsubsidized)has Decreased from $4,000