5-1 “Undercosting a product increases the profit from the product and benefits the firm.” Do you agree? Why? 5-2 Firms sell products with high costs at high prices. High selling prices increase...

5-1 “Undercosting a product increases the profit from the product and benefits the firm.” Do you agree? Why?

5-2 Firms sell products with high costs at high prices. High selling prices increase revenues and profits. Why then should managers worry about product overcosting?