Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
explain variable costs, fixed costs, average variable
costs, average fixed
All the businesses need some inputs to generate outputs. There are majorly two types of inputs, namely- factor inputs and non factor inputs. Factor inputs are the inputs used in the business in the form of land, labor, capital and entrepreneurship. The other non-factor inputs are the raw materials that that company used for the production of goods. Cost can be defined as the expenditure than a company incurs in the purchase of these factors of production and the cost incurred for the process used to covert these factors of production into finished products.
The cost can also be classifies on the nature of work into selling costs and production costs. The cost that a company incurs while doing all the necessary activities to sell a product come under the selling costs. These activities can be advertisement, promotion, or delivery of products. And production costs are the costs incurred in the manufacturing process.
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