179k views
5 votes
Cost-based pricing by low-cost producers is most likely to occur in which stage of the product life cycle?

User Siji
by
7.5k points

1 Answer

2 votes

Final answer:

Cost-based pricing by low-cost producers is most likely to occur in the growth stage of the product life cycle.

Step-by-step explanation:

Cost-based pricing by low-cost producers is most likely to occur in the growth stage of the product life cycle. During this stage, a product gains market acceptance and sales start to increase rapidly. Low-cost producers can take advantage of economies of scale to offer lower prices and attract a larger customer base. As the market expands and the firm achieves economies of scale, its production costs decrease, allowing it to offer competitive prices to consumers.

User Mabiyan
by
7.8k points

No related questions found