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Because, when you buy big amounts of products, the company you buy it from likes it, because they know that they will sell the product instead of overproducing goods that might not sell in the market, therefore they make it cheaper in order to sell as most of the product as they can.

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Q: Why improving productivity tends to lower prices?
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How do you know if your prices are too high?

If competitors are selling a comparable product or service at a significantly lower price, that is a clue that your prices are too high. If few people are buying what you are selling, very likely your prices are too high (although poor sales figures can be related to other problems, such as lack of advertising, bad store location etc.). The unique method to check prices is by making comparisons. The market, any kind of market, doesn't have standard prices. The bigger is a market, the prices tends to be lower.


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What is the meaning of incentive?

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