MGTA02H3 Lecture Notes - Psychological Pricing, Fixed Cost
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MGTA02H3 Full Course Notes
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Pricing: deciding what the company will receive in exchange for its product. Pricing objectives: goals that producers hope to attain in pricing products for sale. Market share: a company"s percentage of the total market sales for a specific product. Variable costs: those costs that change with the number of goods or services produced or sold. Fixed costs: those costs unaffected by the number of goods or services produced or sold. Break-even analysis: an assessment of how many units must be sold at a given price before the company begins to make a profit. Break-even point: the number of units that must be sold at a given price before the company covers all of its variable and fixed costs. Price leadership: the dominant firm in the industry establishes product prices and other companies follow suit. Price-skimming strategy: the decision to price a new product as high as possible to earn the maximum profit on each unit sold.