What Are the Two Basic Tools Used in Price-Setting

question 34

Short Answer

What are the two basic tools used in price-setting?
Profit maximization and market share
Advertising and sales promotion
Cost-oriented pricing and break-even analysis
Cost-oriented pricing and profit maximization
Cost-oriented pricing and market share

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Definitions:

Breaking Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Taking a Loss

The action of selling an asset for less than its purchase price, resulting in a financial loss for the seller.

Regulated Natural Monopolies

Companies that operate in a market with no competition due to high infrastructure costs, but their prices and services are regulated by the government to protect consumers.

Public Utilities

Companies that provide essential services such as water, electricity, and telecommunications to the public, usually subject to government regulation.