Translation: We’d be performing price inceases because we’ve determined the makret would bear it under the guise of [insert reason here].
Remember kids, profit maximizing firms don’t set prices according to their costs plus some profit margin. Prices are set to whatever the market would bear where the price * volume yields the highest revenue.
Translation: We’d be performing price inceases because we’ve determined the makret would bear it under the guise of [insert reason here].
Remember kids, profit maximizing firms don’t set prices according to their costs plus some profit margin. Prices are set to whatever the market would bear where the price * volume yields the highest revenue.