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Factors governing prices and pricing decision

Illustrates the factors governing prices and pricing decision in briefly?

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Price is very significant to the buyer and the seller both. In that connection, this may be noted that within economic theory, two parties must be generally emphasized that is buyers and sellers. However, in practice, as pointed out by Oxenfeldt, exact other parties are also involved within the pricing process, that is Rival seller, middlemen & government and potential rivals. All such parties also exercise their affect in price determination.

Factors governing prices may be divided in internal factors and external factors.

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