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In this short revision video we look at a range of business objectives and how they affect the p...
In this short revision video we look at a range of business objectives and how they affect the price that might be charged to consumers.
Key revision points:
Objectives often driven by managerial motives
Interdependent behaviour in an oligopoly - firms must consider the likely reactions of rivals
Most businesses are satisficers rather than maximisers
Regulatory interventions do matter e.g. price capping
More firms now use big data to drive revenues
Consumers are increasingly sensitive to issues surrounding fair / ethical pricing