Question

Health Born Cereal Corp. wants to build its global sales volume quickly. It enters all markets at the lowest price possible it can charge, which undercuts the prices of all its competition. The company knows this might result in initial losses, but in a few years, it should be making substantial profits with a cost advantage over everyone else. This is an example of Multiple Choice O market-based pricing. O O experience curve pricing, O O price skimming, O multipoint pricing O dynamic pricing.

Answer 1

Experience curve pricing

Explanation: In experience curve pricing, a firm initially charges a price lower than its average total cost with the expectation that costs would decrease as the firm produces more in the future.