Understand demand-oriented, cost-oriented, profit-oriented, and competition-oriented approaches tpricing and the major factors considered in arriving at a final list or quoted price.
Explain what a demand curve is and what price elasticity of demand means.
Explain the role of revenues (sales) and costs in pricing decisions.
Understand the value of break-even analysis.
Recognize the objectives a firm has in setting prices and the constraints on the range of prices a firm can charge.
Describe the special adjustments made tthe approximate price level on the basis of geography, discounts, and allowances.
