The determination of a selling price for a product is a very important decision in any business. The price determines the amount of the revenues to be received, materially influences the demand for the product, and affects the “image” of the product and the company in the public mind. In setting a price, a manager is, in many businesses, making the most important decision available to him after that of going into the business in the first place. In this chapter, as in the three preceding, we shall consider the economic facts of the decision, and then illustrate the use of a time-shared decision support model for pricing. This model has been implemented on a visual display system.
KeywordsDemand Curve Maximum Profit Price Policy Full Cost Price Decision
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