Foreign Educator Teaching System

Tag: pricing

  • Pricing under monopoly

    Pricing and output policies in monopoly One seller supplying the product Monopoly can charge the price which is acceptable to the consumers It may restrict the supply to increase the demand and earn abnormal profits Monopoly does not respond to the consumers’ demands because it knows it will sell the product anyway

  • Pricing under perfect competition

    Pricing and output policies in perfect competition Large number of buyers and sellers The firms charge the same price as the competition does, they do not increase or decrease price They seek to achieve competitive advantage Firms respond quickly to the changes in consumer demands

  • Principle of Profit maximization

    Principle of profit maximization Firms strive to achieve maximum profits. They do this by keeping the difference between total revenue and total cost highest and in a positive figure

  • Extension strategies

    Awareness of extension strategies The main aim of the extension strategies is to extend the maturity phase. This can be done by doing the following things Selling product in new market Selling product to new group Making changes in the product