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What the traffic can bear pricing
Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms. This method brings high profit in the short term. But what the traffic can bear is not a safe concept. Chances of errors in judgment are very high. Also, it involves trial and error. It can be used where monopoly oligopoly condition exists and demand is relatively inelastic to prices. Buyer opposition or consumerism is bound to set in course of time when a firm sets its prices on the basis of what the traffic can bear.
Disadvantages of Simulation 1) Although all models are simplification of reality, they may still be complex and require a substantial amount of managerial and technical time.
MOTIVES FOR HOLDING INVENTORIES If production and delivery of goods were instantaneous, there would be no need for inventories. However in reality, the manufacturing and purcha
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How many forms of break even charts?
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