During the early stages of the learning curve firms, Ask an Expert

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During the early stages of the learning curve, firms sometimes establish a price for their products that is lower than their actual costs, in anticipation of lower costs later on, after significant learning has occurred. This activity is called “forward pricing.” Under what conditions, if any, does forward pricing make sense? What risks, if any, do firms engaging in forward pricing face?

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Financial Management, Finance

Category:- Financial Management
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