When Volkswagen first sold their Jetta TDI vehicles, they were manufacturing them in lots of 10,000. After realizing the high demand for the vehicle, they increased their manufacturing volume to lots of 25,000, and, in-turn, lowered the price of the vehicle by $2,500, because of increased efficiencies calculated by manufacturing more. By selling at a lower price, Volkswagen is engaging in:

When Volkswagen first sold their Jetta TDI vehicles, they were manufacturing them in lots of 10,000. After realizing the high demand for the vehicle, they increased their manufacturing volume to lots of 25,000, and, in-turn, lowered the price of the vehicle by $2,500, because of increased efficiencies calculated by manufacturing more. By selling at a lower price, Volkswagen is engaging in:

When Volkswagen first sold their Jetta TDI vehicles, they were manufacturing them in lots of 10,000. After realizing the high demand for the vehicle, they increased their manufacturing volume to lots of 25,000, and, in-turn, lowered the price of the vehicle by $2,500, because of increased efficiencies calculated by manufacturing more. By selling at a lower price, Volkswagen is engaging in:



A.

Cost-plus-percentage-of-cost pricing


B.

Marginal revenue pricing


C.

Target return-on-investment pricing


D.

Experience curve pricing



Answer: D


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