Why should managers worry about product overcosting or$$ undercosting?

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Part $1$

Undercosting

may result in competitors entering a market and taking market share for products that a company erroneously believes are

high$-$margin

or even

profitable

$.$

Overcosting

may result in companies selling products on which they are in fact$$

losing

$$money$,$ when they erroneously believe them to be

profitable

$.$