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.
The demand for a resource would increase while the: (w) price of which resource decreases. (x) price of a substitute resource decreases. (y) consumer demand for products decreases. (z) price of a complementary resource decreases.
The costs of investing within human capital are probably to be borne by the employee when human capital a worker obtains “on the job” is: (1) general. (2) marginal. (3) precise. (4) generic. (5) specific. Q : Decrement of supply and demand for a When both supply and demand for a good reduce, this is certain that: (w) market price will rise. (x) equilibrium quantity will reduce. (y) quality of the good will decline. (z) level of consumer satisfaction will increase. I need a
When both supply and demand for a good reduce, this is certain that: (w) market price will rise. (x) equilibrium quantity will reduce. (y) quality of the good will decline. (z) level of consumer satisfaction will increase. I need a
Define the inelastic demand.
What are the types of price discrimination?
The relationship between the elasticity of demand for labor and the elasticity of demand for a specific type of output the labor produces is: (1) uniformly negative. (2) uniformly positive. (3) zero. (4) curvilinear. (5) highly variab
When this purely competitive labor market is primarily in equilibrium at D0L, S0L and after that excessive job safety standards are imposed through law, a new equilibrium will be attained at: (1) D0L, S0L. (
Illustrates the causes of business cycle?
Illustrates the Income Elasticity of Demand?
The supply curve of the labor is negatively sloped over wage ranges where the: (1) the demand for leisure rises along with income. (2) leisure is an inferior good. (3) people offer more hours of labor at higher wages. (4) some people
18,76,764
1927625 Asked
3,689
Active Tutors
1420157
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!