7 (5 Points) The Development Of A New Product Was Much Lengthier And More Expensive Than The Company’S Management

Question

7. (5 points) 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 the original target to help recoup some of these costs. Does such a strategy make sense? Explain carefully.

Economics