Marketıng Management Deneme Sınavı Sorusu #959723
The pricing decisions for a product are affected by internal factors. What costs affect prices as a internal factor?
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The firm must be able to recover only fixed costs for deciding price setting. |
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The objective of a firm is to increase return on investment, then it may charge a higher price. |
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The stage at which the product is in its product life cycle also affects its price. |
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While fixing the prices of a product, the firm should consider the cost involved in producing the product. This cost includes both the variable and fixed costs. Thus, while fixing the prices, the firm must be able to recover both the variable and fixed costs and also total costs. |
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While fixing the price of the product, the firm needs to study the degree of competition in the market. |
Costs: Cost is the lower limit of price (or price floor). There are different kinds of costs including fixed costs, variable costs, and total costs.While fixing the prices of a product, the firm should consider the cost involved in producing the product. This cost includes both the variable and fixed costs. Thus, while fixing the prices, the firm must be able to recover both the variable and fixed costs and also total costs.
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