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Theoretically, the “optimal pricing decision is a blending of cost and demand considerations.” Yet the textbook states: “An effective pricing decision should involve an optimal blending of, not a comp
Theoretically, the “optimal pricing decision is a blending of cost and demand considerations.” Yet the textbook states: “An effective pricing decision should involve an optimal blending of, not a compromise between, internal financial constraints and external market conditions.” What are the roles of non-incremental fixed and sunk costs, as internal financial constraints, and competitive advantage, as external market conditions, in achieving the best pricing strategy (i.e., pricing decision)? Explain your answer.
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