(See related pages)
After reading this chapter you should be able to:
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Identify the elements that make up a price. |
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Recognize the objectives a firm has in setting prices and the constraints that restrict the range of prices a firm can charge. |
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Explain what a demand curve is and the role of revenues in pricing decisions. |
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Describe what price elasticity of demand means to a manager facing a pricing decision. |
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Explain the role of costs in pricing decisions. |
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Describe how various combinations of price, fixed cost, and unit variable cost affect a firm's break-even point. |