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5. Unit 4- Market structures
5. Unit 4- Market structures

... Governments also protect consumers from being sold poor quality or even harmful goods through consumer protection laws. These protect consumers from exploitation and harmful business activities, e.g. it is an offence to sell goods or services which are unsafe or in an unsatisfactory condition or to ...
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... Durashine now faces competition from firms other than Supasheen. It thus decides to consider some alternative strategies to adopt. It examines four options. The first is to a 10 per cent price cut. The second is to introduce a new brand of high gloss durable emulsion paint. The third is to launch a ...
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... – There are numerous sellers trying to differentiate their products from those of competitors so as to have some control over price. – There are many sellers, though fewer than in pure competition. ...
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... In general, the importance of the price will depend on the competition and on the market the product or service is aimed at. Consumers usually have some idea they would pay, this is known as price plateau. A company cannot move too far away from this price. In some cases, a company may decide on pen ...
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... – one firm is the industry leader – dominant firm sets price with the realization that the smaller firms will follow and charge the same price – can force competitors out of business or buy them out under favorable terms – could result in investigation under ...
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... – one firm is the industry leader – dominant firm sets price with the realization that the smaller firms will follow and charge the same price – can force competitors out of business or buy them out under favorable terms – could result in investigation under ...
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Pricing strategies

A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Businesses may benefit from lowering or raising prices, depending on the needs and behaviors of customers and clients in the particular market. Finding the right pricing strategy is an important element in running a successful business.
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