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Economics - Assignment Example

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Limit Pricing: It is an exploitive pricing strategy imposed by a firm to make a market unprofitable for other interested players, as the prices set for the products are lower than the production cost (Hirschey 564).
Cross-subsidy Pricing: It is an exploitive strategy, which…
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Economics assignment
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Economics

Download file to see previous pages... Contribution Margin-Based Pricing is a strategy, which enables firms to maximize the market’s profits through measuring the amount of units that they can sell at a certain price. The profit determination emanates from the measure between the invested costs of production against the price (567).
Psychological Pricing: This is a strategic pricing approach, which lures customers to perceive that they will spend less on a product, for example, a product priced at $4.9 will attract consumers to make purchases with the perception that they will not be paying $5 (Hirschey 569).
Pricing in Public Utilities: Arguably, it is a strategy, which emphasizes on using subsidies in reduction of the costs of producing and availing goods of necessity and important services to the consumers (Hirschey ...Download file to see next pagesRead More
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