When Setting Prices,the Company Must Consider Its External Environment

question 86

Essay

When setting prices,the company must consider its external environment.Describe four aspects of the external environment and how they affect businesses.

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Definitions:

Pure Competition

A market structure characterized by a large number of firms, all producing identical products, and no single firm has any influence over market price.

Extra Unit

The additional quantity of a product or service that is produced or provided.

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers, all selling identical products, and no single buyer or seller can influence the market price.

Total Revenue

The cumulative financial gain a company secures from its commercial activities, including sales and services, within a particular duration.