ADM 2320 Lecture Notes - Lecture 15: Marginal Revenue, Profit Maximization, Marginal Cost
9 May 2016
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Government corporation that helps you start a business. At what point on the scale do you consider the product to be cheap/inferior etc. At what point on the scale do you consider the product to be expensive? air canada hires expensive sales rep whereas smaller companies are gonna say no to it. Perceived value scaling point of marginal cheapness anything below that you dont wanna sell somehting where people perceive it to be too cheap point of marginal expensiveness anything beyond that is total nonsense. Opp you dont have to completely depend on this 100%you can combine this with something else. Marginal revenue and marginal costs define best price and best quality. Consider priceline"s pricing method from the customer point-of view. A price leadership strategy follows the industry leader by setting the same or similar prices. Consumer response to odd prices differs from responses to even prices.
