MGTA02H3 Chapter 4: Pricing Strategies & Break-Even Analysis
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MGTA02H3 Full Course Notes
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In terms of pricing products, as soon as one business raises or lowers their prices, other competitors will quickly match it. Pricing in a monopolistically competitive market: monopolistically competitive market many small sellers that do(cid:374)"t ha(cid:448)e a (cid:271)ig share of the (cid:373)arket, as (cid:449)ell as a few large sellers that try to differentiate themselves, ex. Many businesses sell athletic shorts, but nike is one of the most notable athletic brands. Pricing in a monopoly market: monopoly market only one available seller for a product or service, either we buy the product from them or not get the product at all. If it costs to make a pizza, then it would cost to make 2 pizzas. If the business sells their products below the cost of sales, it will lead to a loss: then in the pizza example, the manager would need to sell pizzas at least . 01.
