External factors in governing prices
What are the external factors in governing prices?
Expert
External Factors are as follows:
These factors are ahead of the control of organization. The given are the major external factors.
1. Demand: when the demand for a product is inelastic this is better to fix a higher price and when demand is elastic, so lower price may be fixed.
2. Competition: Number of substitutes obtainable in the market and the extent of competition and the price of competition and so forth is to be considered during fixing a firm price.
3. Distribution channels: Conflicting interest of middleman and manufacturers is one of the significant factors that influence the pricing decision. So, manufacturer would desire that middleman must sell the product at a minimum mark up.
4. General economic conditions: throughout inflation a firm forced to fix a higher price and in deflation forced to decrease the price.
5. Government Policy: when taking pricing decision, a firm has to take in consideration the taxation policy and trade policies of the Government.
6. Reaction of consumers: When a firm fixes the price of its product unfairly high, the consumer might boycott the product.
All firms maximize profit through hiring the amount of labor where: (w) w = MRC. (x) MRP = VMP. (y) MRC = MRP. (z) MPP = MRP. I need a good answer on the topic of Economics problems. Please give me
Illustrations of economic capital would NOT contain: (i) an accountant's computer. (ii) 1,000 shares of stock within Google. (iii) a sixteen-pound sledgehammer. (iv) tires upon an eighteen-wheeler truck. (v) paper into the printer of a romance novelis
Screening and signaling are attempts to: (w) decreases job interview time. (x) decrease the problem of adverse selection. (y) uphold equal opportunity laws. (z) All of the above. I need a good answer on the topic o
Workers who keep their jobs will be more productive after firms adjust to raises in: (1) competition in an industry. (2) wages. (3) technological advances. (4) capital costs. (5) government regulation. Hey friends please give your
Illustrates the managerial Economics according to Spencer and Siegleman?
Differentiate between Private Cost and Social Cost.
Write down the limitations of Marginal Costing?
Explain the external economies of scale.
Labor’s physical productivity based most directly on technology and the: (w) tastes and preferences of consumers. (x) transactions demand for money. (y) prices and availability of the other resources. (z) level of per capita income.
Describe about the term Boom in phases of business cycle.
18,76,764
1951774 Asked
3,689
Active Tutors
1456033
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!