5. The imposition of a high price on products tends to encourage new competition in a market. True or false? 23. A sure way out of the business is to set prices below `3`. Tendering is a common way of setting prices for public procurement, particularly for public works such as bridge construction. True or false? 17. Woods and Co is one of the largest suppliers of office furniture in the UK. They relocate production abroad, sell directly and keep their prices low. New businesses that do not have woods economies of scale feel it is impossible to compete. What kind of prices woods and Co? An agreement is an association of producers or suppliers with the aim of keeping prices high and limiting competition. This is a group of similar companies that agree on prices between them in order to increase their profits and limit competition c. If you change the price, the volume of sales changes very little.
20. If a product is to have a low-cost demand curve, what does that mean? 25. The price starts when two or more competitors are constantly under-priced relative to each other`s prices. Home “Past Questions ” Economy” An agreement between companies on price and segmentation is called 1. In an open market, the price of a product would be determined by the forces of demand and supply. True or false? 13. What is the sales name for products that cover the costs of the business at a specified price? 22. There are three key elements for pricing: competitors` prices, perceptions of product value and costs. (a) a group of companies that meet and set prices between them 7. Johnny recently opened a sandwich bar, but it`s not safe to calculate the prices of his various products.
His clients tell him that they would never pay more than $4.00 for a sandwich, so he sets his peak price at $4.00. What kind of pricing does it use? 16. Marie is a software designer who works as a freelancer. She wants her clients to really appreciate their work and therefore she always places her prices higher than their competitors. Sometimes she loses work, but she often wins the market. What kind of pricing does it use? 10. Fred runs a bakery. He has a lot of bills to pay: electricity; Shop rental; Staff salaries; Flour for bread, cakes and pastries; Etc. His accountant says it is important to properly classify these costs so that he can set the correct prices for his products. How would you classify the store rental? Sign up or sign up to receive notifications if there is a response to your comment. 4. Market prices are common in retail trade.
True or false? 12. What kind of cost are “mark-up prices” based on? 8. For his simple sandwiches, Johnny checks what other sandwich bars calculate and calculates in much the same way. What is this pricing? Related Lesson: How to Implement Cooperation Monopolistic competition and oligopoly 18.