Pricing options

Setting price to achieve specific business objectives is one of the most significant decisions a firm will make. Under conditions of perfect competition individual firms are price takers and have no influence on price. In this case the industry as a whole sets the price. When firms operate in less than perfectly competitive markets they can make their own price.

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See also:

Perfect competition

Monopolistic competition

Oligopoly

Monopoly

Profit maximisation

Revenue maximisation

Sales maximisation