--%>

Illustrates the pricing policy and practices

Illustrates the pricing policy and practices?

E

Expert

Verified

Formulating price policies and setting the price are the very significant aspects of managerial decision making. Actually, price is the source of revenue that the firm seeks to maximize. So again, this is the most significant device a firm can utilize to expand the market. When the price is set more high, a seller may price himself out of the market. When it is lower, his income may not cover costs, or at best, fall short of what this could be. Conversely, if the Company prices too much, this will make fewer sales. If this charges too little, this will sacrifice profits. Therefore, the price must be fixed judiciously.

   Related Questions in Managerial Economics

  • Q : Illustrates the relatively elastic

    Illustrates the relatively elastic demand?

  • Q : Determine loss in curve of profit or

    As is given figure below. Assume that the prevailing price is P1 and the firm is now producing its loss-minimizing quantity. Determine the area which shows the loss: w) P2deP1. x) P3cbP1. y) P3caP0

  • Q : Negative Relationship in Demand for

    The demand curve for labor can be demonstrated as a negative relationship between: (w) the quantity of labor demanded and the wage rate. (x) labor productivity and the quantity of labor used. (y) employment and output. (z) wages and GDP.

  • Q : Government and Labor Assume that male

    Assume that male nurses are paid more than female nurses for same work. When an “equal pay for equal work” law is enforced and enacted, it may: (w) decrease the wages of male nurses. (x) not influence the wages of female nurses. (y) increa

  • Q : Illustrates the Demand function of a

    Illustrates the Demand function of a commodity?

  • Q : Additional wage-elastic of demand A

    A firm’s demand for labor tends to be additional wage-elastic while: (1) the price elasticity of demand for output is greater. (2) substituting capital for labor is harder. (3) unskilled workers join unions. (4) labor costs are

  • Q : Social Welfare and Labor Market

    A labor market operates inefficiently when labor is hired only up to a point where, that the last worker: (1) VMP = w. (2) VMP minus MRC exceeds zero and is maximized. (3) P x MPPL = w. (4) added total revenue equals added total cost.

    Q : Define the pricing of a new product

    Define the pricing of a new product.

  • Q : Explain the meaning of price Explain

    Explain the meaning of price.

  • Q : Explain about the signaling Signaling :

    Signaling: (w) attempts to finesse adverse selection. (x) involves behavior by agents to communicate special qualifications which will elicit the offer of a contract from a principal. (y) refers to potential employees obtaining skills, education or ex