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Opposite of Full Cost Pricing which is based on cost of production.It is based on market situation. The firm will adjust its own price policy in time with the general pricing structure prevailing in the industry. Happens in Oligopolistic, Pure competition and Monopolistic Competition.In some industries like clothing, automobiles, electronic goods, etc firms even tailor the cost of production to the prevailing (or going ) price.Followed in case of products whose development has reached a stage of maturity. Producers and consumers accept a stable price relationship.Firms tailor costs given the prices.

GRP is adopted when:

•Costs are difficult to measure

•The firm wants to avoid tension of price rivalry in the market

•When there is price leadership of a dominant firm in the market.

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