The Economics of Pricing Refer to pp.232–233 of the prescribed - TopicsExpress

The Economics of Pricing Refer to pp.232–233 of the prescribed textbook. Before setting a price an organisation must consider the following factors: Products: What is the product and are there any substitutes or complementary products available? Consumers: Who are the customers; what is their income, how large is the market and what are the tastes (likes) of the consumer? Margin returns: What is the marginal revenue and how many units need to be sold at what price before the organisation can start making money? Price elasticity: How sensitive is demand to changes in price?

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