MGTA02H3 Chapter Notes - Chapter 7: Psychological Pricing, Price Skimming, Tacit Collusion
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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. Companies price their products in objective for pro t-maximization. Market share: a companys % of total market sales for a speci c product. During dif cult times, survival may become companys objective. Cost oriented pricing considers the rm"s desire to make a pro t and takes into account the need to cover production costs. Every dollar made, (if markup is 50), 0. 50$ would be gross pro t for store. Variable costs: costs that change w/the number of goods/services produced or sold. Xed costs: costs unaffected by the # of goods/services produced or sold. Break-even analysis: an assessment of how many units must be sold @ a given price before the company begins to make a pro t.
