ADMS 2200 Chapter Notes - Chapter 17: Average Cost, Bid Rigging, Predatory Pricing

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: A L L

Document Summary

Price the exchange value of a good or service. Federal legislation prohibiting price discrimination, price fixing, bid rigging, predatory pricing, false or misleading ordinary selling price representations, and other anti-competitive practices. Consumers must be convinced they are receiving good value for their money. Intense competition results from competition for leadership position. Profit = revenue expenses total revenue = price x quantity sold. Profit maximization point at which the additional revenue gained by increasing the price of a product equals the increase in total costs. Target-return objectives short-run or long-run pricing objectives of achieving a specified return on either sales or investment. Belief that increased sales volume is more important in the long run than immediate profits. Can maximize sales through pricing and non-price factors such as service and quality. Market-share objectives the goal of controlling a specified minimum share of the market for a firm"s good or service. Example: apple has 83 percent share of the market for digital downloads.