Problem: Describe each of the primary methods used for setting price, explaining its applications, strengths and weaknesses, show the formula and calculate an example for each method.
1) Pricing using demand estimation (MR=MC)
Linear Approximation Method (How does one do this?)
2) Cost-Plus Pricing
Breakeven Analysis
3) Mark-Up Pricing
Targeted Returns
Using Elasticity Estimates to find optimal mark-up.