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meaning that they are selling the product for no income. In fact, they could be continually selling the product at a price that is lower
meaning that they are selling the product for no income. In fact, they could be continually selling the product at a price that is lower than the cost to produce it. Or the product is popular at the low price, and when they are unable to nd a low cost production strategy, they would need to raise the price of the product. Then the consumers might not be willing to pay this new price, making the entire product a loss for this firm. So in conclusion, one of the huge risks they are facing is that they might not be able to get income from the forward pricing. They would actually be losing money and their film might not be able to recover from the financial loss they sustained from this forward priced product
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