The development of a new product was much lengthier and more expensive than the companys management anticipated.

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The development of a new product was much lengthier and more expensive than the company’s management anticipated. Consequently, the firm’s top accountants and financial managers argue that the firm should raise the price of the product 10 percent above its original target to help recoup some of these costs. Does such a strategy make sense? Explain carefully.

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Managerial economics

ISBN: 978-1118041581

7th edition

Authors: william f. samuelson stephen g. marks

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