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You lose money. If your prices are too low, you won't make as much money as you would if your prices were correct--at worst, products could sell for less than it costs to sell them. If they're too high, customers will buy from other companies.

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16y ago

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What are the advantages and disadvantages of Predatory Pricing?

The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.


The advantages and disadvantages of full cost plus pricing?

The advantage of full cost plus pricing is the higher return on investment. The disadvantage of full cost-plus pricing is lower demand for the products.


When government structure no longer decides each companys market role and pricing?

Deregulation~


How is imperfect competition different from perfect competition in terms of market structure and pricing dynamics?

Imperfect competition differs from perfect competition in market structure and pricing dynamics. In imperfect competition, there are fewer sellers and barriers to entry, allowing firms to have some control over prices. This leads to higher prices and potentially lower quantities produced compared to perfect competition, where there are many sellers and prices are determined by market forces.


What are the different pricing methods available for businesses to consider?

Businesses can consider various pricing methods, such as cost-plus pricing, value-based pricing, competitive pricing, and dynamic pricing. Cost-plus pricing involves adding a markup to the cost of production. Value-based pricing focuses on the perceived value of the product or service to customers. Competitive pricing involves setting prices based on what competitors are charging. Dynamic pricing adjusts prices based on factors like demand and market conditions.