AS natural monopoly could be like emeralds from Colombia say or softwood from British Columbia, Canada whereby there are few competitors that have the product. The government may want to regulate the price of such goods such that it can't be accused of flooding the market on the world market (ie not too low a price) and this could be regulated by trade agreements like NAFTA or may limit the upper price limit to allow more purchasers to buy the product. Personally it is felt that so-called 'free-trade' agreements interfere far too much in the economies of member countries especially junior partners as they encourage the influx of cheap goods from other countries, thus putting out of business or lowering standards for good production within the country and also violating the laws of the country by provisions which overrule the laws normally used to protect goods from the country like import duties for example.
Answer:
While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company
Explanation:
Key factors in calculating the sale price can be:
- Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
- Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
- Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;
Cost-based pricing has its sub-methods such is Cost plus method
The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.
Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.
Formula: price = Direct costs + Indirect costs + Rate of profit
Answer:
2
Explanation:
because two is the second smallest place number.