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What Pricing Concept Is Used If All Costs Are Considered

question 141

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What pricing concept is used if all costs are considered and a fair mark-up is added to determine the selling price?


Definitions:

Less Elastic

Less elastic refers to a demand or supply that is relatively unresponsive to changes in price compared to a perfectly elastic curve.

Increase Price

A decision by a supplier or manufacturer to raise the cost at which goods or services are sold.

Complement Good

A product that is used together with another product, where the use of one increases the demand for the other.

Substitute Good

A product or service that can be used in place of another to satisfy the same need or desire.

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