Firms engage in an activity called forward pricing when


Firms engage in an activity called "forward pricing" when they establish, during the early stages of the learning curve, a price for their product that is lower than their actual costs, in anticipation of lower costs later on, after significant learning has occurred. Under what conditions, if any, does forward pricing make sense? Why - namely if conditions do not exist why will forward pricing not "work?"

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Business Management: Firms engage in an activity called forward pricing when
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