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Discuss the main factors which influence the prices Which firms set for their products.
The first 200 words of this essay...
Discuss the main factors which influence the prices
Which firms set for their products
The objective of the firm is very important in determining how they are to set their prices. Their objective could be, for example, to either maximise profit or to raise market share. Whatever their objective there are many factors which can influence the firms when setting their prices for their products. Some of these methods of pricing can have their advantages on the consumer, however there are many occasions where pricing decisions can have negative effects. In what follows, you will be able to see examples of both of these.
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