MGTA02H3 Chapter Notes - Chapter 4: Fixed Cost, Variable Cost, Oligopoly

170 views4 pages
10 Sep 2016
School
Department
Course
Professor

Document Summary

Mgta02 chapter 4 pricing strategies & break-even analysis. Two things determine the business" ability to set its price: 1: the degree of competition, 2: the business" costs. Marketers should recognise that consumers aren"t necessarily rational. Pricing in a perfectly competitive market: characterized by a large number of small sellers, offering more-or-less the same product, buyers enjoy a good deal of choice. Buyer has the right to walk away from any seller and check elsewhere: individuals must charge what everyone else does. Market price: at any particular time, the prevailing price to which buyers and sellers agree. Pricing in an oligopoly market: small number of competitors that watch each other closely. If one raises/lowers prices they all do: compete of the bases of differentiation, oligopoly businesses want consumers to associate their product with colours, designs, and logos that become symbols for the product"s reliability. Pricing in a monopolistically competitive market: most of the many sellers are small.

Get access

Grade+20% OFF
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents