Cost declines constantly in experience curve pricing theory

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Assignment

Answer the following 3 questions. You are allowed to use any sources plus your own understanding:

1. Explain why the average cost declines constantly in the experience curve pricing theory.

2. Tell me if the average cost will decline forever in the theory if the volume continues to double. If not, explain why and tell me the concept that's relevant to your answer.

3. Please tell me how and what business situations you can use the experienxe curve theory.

Reference no: EM133300809

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