ENTREPRENEURSHIP

Detailed explanation-1: -Lowering prices is one of the most common strategies that companies use to increase market share for a product. If their competitors also lower their prices, a price war begins. Price wars are most common in industries where there is both heavy competition and several comparable products.

Detailed explanation-2: -Economic hardships often force companies to lower prices to sell their products. Realistic prices are often associated with the quality of the product. Competitive pricing occurs when you try to meet or beat your nearest competitor’s prices.

Detailed explanation-3: -Pricing is the determination of an exchange price at which the buyer and seller perceive optimum value for a good or service. The exchange price is the amount that both customers and sellers are willing to accept.

Detailed explanation-4: -Monopoly market In a monopoly, a single business produces a product that has no substitutes. Called price-makers, monopolies determine the price of a good or service, create barriers to enter the market and continuously change prices to maintain profits.