Experience-Curve Pricing Refers to

question 31

Multiple Choice

Experience-curve pricing refers to

• A) the method of pricing where the price of a product often rises following the expansion of costs associated with the firm's producing and selling an increased volume of the product.
• B) the point at which profits double, then double again, as more consumers buy the product.
• C) a predictive pricing plan based upon the knowledge that the prices will fluctuate in a predictable pattern within a given industry based on the diffusion of innovation.
• D) a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 to 30 percent each time a firm's experience at producing and selling them doubles.
• E) a pricing strategy that uses price estimates based upon the consensus of the salesforce and the firm's top management team.

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Definitions:

Lower Class

A term often used in sociology to describe a social group that is at the bottom of a societal hierarchy based on wealth, education, or occupation.

Education Levels

Classifications that describe the highest degree of education completed by individuals or required for certain jobs.

Means

Means refer to the average values of sets of data, calculated by summing all values and dividing by the number of data points.