Answer: Experience curve pricing
Explanation:
The experience curve pricing is one of the type of approach that helps in explaining the various types pricing method in which the actual product price is lower as compared to the average cost.
In the experience curve pricing, the overall production cycle of the production and the services will increase due decrease in the cost or price in this experience pricing curve.
According to the given question, the experience curve pricing is one of the type of formal plan that helps in explaining the average cost method on the basis of the experience curve.
Therefore, Experience curve pricing is the correct answer.
