1. Discuss factors that a company might look at when determining prices for its products.
1. Discuss factors that a company might look at when determining prices for its products.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Discuss factors that a company might look at when determining prices for its products.
Expert Solution
Step 1
The factors determining the price of the company's product is given below,
- Cost of production- The management should fix a price above the cost price of the product.
- Demand of product - When the demand of the product is high, the company can charge high price
- Market condition- according to the correct situation of the market,like boom or recession,the firm can alter their product price
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