What Are the Choices Available to Companies When Setting Prices

question 96

Essay

What are the choices available to companies when setting prices to avoid price escalation problems?

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Definitions:

California Edison

A major public utility company serving much of California, primarily involved in the generation and distribution of electricity.

Investment

The allocation of resources, usually financial, into assets with the expectation of generating income or profit in the future.

Saving Rate

The proportion of disposable income that is saved by individuals or households over a period, rather than being spent.

Interest Rates

Rates at which interest is charged or paid for the use of money, typically expressed as an annual percentage rate.