10. TYPES OF COSTS AND LEVELS OF
PRODUCTION
Fixed cost- do not vary with production
Variable cost- vary directly with the
level of production
Total cost- sum of fixed and variable
costs
Average cost- cost per unit at a
particular level of production-
graphs
20. Going rate pricing
Firm bases its price largely on
competitors’ prices
Smaller firms “follow the leader”
21. Auction-type pricing
English auctions- highest bidder gets
the item
Dutch auctions- an auctioneer
announces a high price for a product
and then slowly decreases the price
until a bidder accepts
Sealed-bid auctions- suppliers submit
only one bid ; they cannot know the
other bids.
22. Step 6
SELECTING THE FINAL PRICE
In selecting final price company must
consider other factors like marketing
activities, company pricing policy, gain and
risk sharing pricing and impact of price on
other parties.
23.
24.
25. Created by :
Tanvi Maheshwari
Lady Shri Ram College for
Women,
during an internship by
Prof. Sameer Mathur,
IIM Lucknow