Economic
Economic
Economic
yate
Pace COmpetition
Faice Competition is aeluted with the
paice_ of the paoduct,Ne Rnaw thut
euch and evezspxoducen twdnts to commdnd
the Meaket by- Selling his pxoductian ctd
high evelEoz thutpuzpose h e does paice
COmpetitiom He knowsthe loN ofdemund,
If the plce illbe lowezathe sellin
will be qzecutez In_cuSeaf mano polistics
Gompetiion wheze the fizmg Uxe unlimited,
uncd high Volume of paoducion is done-
the pzice Competition becomeg Cve.ay.
complicate.d
issue foa thep2oduceaan.
one hund he wunts meximum pzofit und
On the otHez hund he wunts to inczeuse
his Sules.
* Nonpaice Comp.cttion :
Poge
Date
IPR
Fo pezsonul henefits, the paoducez Should
zivuls business sec.aetsand
mot_decluae
infozmution -
The pzoducer muintains
he interests o f
employeesand debentuae- holde25, Shuzeholdeas
and investods,
s undez -
Public Imuqe
enployeea9bec.uuse
Compefent and efficient
imuqe husC
unit with qood public
goodimpaessian n eveay one's mind
COVeanment Requlutions 3
faom_Goveanment e c l u tian
O be fzee
s viqble-
Cind unnecessuzy i n t e z f e a e n c e i t
fuiàcompefihan
thut_ business fulfill the
3 Suavival d &20wtn
put o f fhe
Evezy busineSS nit 19 c
Every
So.ciets It_ Cun mot Suavive_in 19olautoH,-
So foz its contlnuOUS g20wth, it_needs
vuious
Suppmt faom Societs Aquin, the
esouACeS from_ SOciets aae used, Thezefoxa
business unit Should_ Use cetuin
of ifseazninq foa t h e
Af welfuze of
puzt
the paod peopleThisis the
impoztunt
+he-
feutue of fuiz_Gompetitian.
Foge
ete
policies a n d Settin
Ans. Foamulatinq paice
impoafunf uspect
the p i C e i s t the_most
he
Paice
o f munuce XluL decision -muklnq
whi£h-
2evenue,
n _ fuct isthe Souzce of
mCXimize Aquin,i tS
the fizm_ Seeks to
fiXm Cun
f h e _ m o s t _ i m p o z funt_de vice _C
muaket I f the p i c e
USe. f o expundis
q S e l l e z muy be pushed
1 $et toohiqh
too low-
Out_of the muzket Tfit
mdy not covez COsts 0
isincome
be,-
qt best, fall Shozi of whut it_could
HOweveEZ Settinqpxices is a compliccated
fozmulq
pXoblem und heze_s no peafe.ct
fo doing So whe thedto_paoblemcind
theze is no pezfect fozmulu t o r dain q
SO ALhefhez to Set lawpaice ar
C high paice would depend uponq
numbed offuctoaS Chmda wide veaiety-
of conditions, MoxeaVez, the paidinq-
decision5
is Caitlcu_not only in f h e
beqinhin but _it must be evieialed
and efozmulated faomn timeto tîmee
9.
te
Fuctoa9 affectinq
uneieeiiowne
Paicing Policy
pzoduct1Sc
peteaminingpaicee
foz the
foz paoducez
vey Complicuted proble m
the
befaxe decidinqthe pzice
becuse fuctazs
h u s _ t o considea muny
xoducez s o u X c e of-
the
on athez S i d e p z i c i n q i s
paoducezcunnot ign0ze
evenue, so the
LeE us
hisside of paoductinn uctivty
ctfect-
Xmine Some muin fuctoxs which
picing policy dixecty_od indizectly
OD_objective o f Cusiness
2) Ntuae of Competition
S u m e GOin.
They cIae two sides of the
Theremustbe co-oadinution between
CO-0zdinution
line Contlict and
4DDouun Hhe
like to chure
&eneully , he paoducez
muaket,ucCO
the paice af his paaduct inithet becomes t h e
to_his_calculutions. So
ding hexe, we
hsave
paic.e of a paoduct. Cut
Selinq not
thut anlty paoducex'swill is
to note
settlethe pzicinqpolics T h e a e
enouqh to
fuctons which huve qaeut
Cze_cinothes- wo
uae whale-
impoztunce in the muzket, They
3etuiless Tneia functions
culs0
Seliez cnd
puatin_paicinq policy
pluy _an impod funt umicubleSettlement
They Must_huve un
wholesellexs
Cand aetuileas.
behoeen
CRoutineMatter
5D Paicing- S C
thut befoae decidinq the
7 I t i s found Studies
muakete.2
p2Oductthe
pzicincq ofhis
foz slmilu PØaducts
Conditiong
the pmuzket foz his OWh
then he S e t l e s p a i c e
cnd aiseCquestion wh
pxoduct Thexe my
Cinswe is-
s -hhe
e hus
hus
Cpaoducex_does S02 The
12
Page.
Dote.
eriit -
he p2opoation of routinedependsupon n
followinq- points
3competitive Muzket
Some muskets huve" Cut HhzoutCom
petition" Under thissituution, the izm
becomes helples fo set up pzicinq accoada
to its Oun uuy. Soit hus touccept the
Common x0utine picing foamuly witho
ans_chunge it ties o Set u newpzicin
u f e i t ispossible thut its p2oduct muy
be thown OLut fzomthe muaket
(6Eteanul FuctodS