External factors in governing prices
What are the external factors in governing prices?
Expert
External Factors are as follows:
These factors are ahead of the control of organization. The given are the major external factors.
1. Demand: when the demand for a product is inelastic this is better to fix a higher price and when demand is elastic, so lower price may be fixed.
2. Competition: Number of substitutes obtainable in the market and the extent of competition and the price of competition and so forth is to be considered during fixing a firm price.
3. Distribution channels: Conflicting interest of middleman and manufacturers is one of the significant factors that influence the pricing decision. So, manufacturer would desire that middleman must sell the product at a minimum mark up.
4. General economic conditions: throughout inflation a firm forced to fix a higher price and in deflation forced to decrease the price.
5. Government Policy: when taking pricing decision, a firm has to take in consideration the taxation policy and trade policies of the Government.
6. Reaction of consumers: When a firm fixes the price of its product unfairly high, the consumer might boycott the product.
A requirement of equal pay for workers along with equal amounts of education, responsibility, and experience is termed as the doctrine of: (1) marginal productivity. (2) non-exploitation. (3) central wage planning. (4) comparable wort
Illustrates the Law of Returns to scale?
When the hourly wage rate for workers this purely competitive firm hires is approximately of $13, this will operate at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e. Q : Demands of consumers adjusting to new CD sales have fallen from 2000, although sales of DVDs have increased, suggesting such that: (w) supply of prerecorded music should have fallen. (x) law of demand does not apply to the music market. (y) demands of many consumers adjusted to new technology. (z) music i
CD sales have fallen from 2000, although sales of DVDs have increased, suggesting such that: (w) supply of prerecorded music should have fallen. (x) law of demand does not apply to the music market. (y) demands of many consumers adjusted to new technology. (z) music i
Economic efficiency for all consumption and production choices would guarantee getting the social objectives of: (w) equality of income distribution. (x) employment and educational opportunities for all. (y) enhanced environmental quality. (z) None of
Illustrates the reasons for charging skimming price strategy?
demand has three essentials-damand+purchasing power+.???
When this purely competitive labor market is firstly in equilibrium at D0L , S0L , an increase into labor force participation rates will result within equilibrium being attained at: (w) D0L , S0L . (x) D
The supply curve of labor is LEAST probable to be “backward bending” for: (1) an individual worker. (2) the economy as a whole. (3) highly specialized industries which are main employers of dedicated PhDs hired only after
Explain the different types of income elasticity of demand.
18,76,764
1924220 Asked
3,689
Active Tutors
1454268
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!