He sent people to Gulags, he purged the army and was intolerant of opposition. Cost-plus pricing is a straightforward pricing method, where a firm sets a price by calculating average production costs and then adding a fixed mark-up to achieve a desired profit level.
This is largely because firms cannot pursue independent strategies. You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all.
Was this review helpful? This superior knowledge can deter entrants into the market. For others, retirement represents the best years of their lives. Oligopolists may use predatory pricing to force rivals out of the market. Rivals have no need to follow suit because it is to their competitive advantage to keep their prices as they are.
If he made all his decisions on his own with no congress support, that would be so much worse.
Cartel-like behaviour reduces competition and can lead to higher prices and reduced output. Ownership or control of a key scarce resource Owning scarce resources that other firms would like to use creates a considerable barrier to entry, such as an airline controlling access to an airport.
It has been suggested that cost-plus pricing is common because a precise calculation of marginal cost and marginal revenue is difficult for many oligopolists.
Cost-plus pricing is very useful for firms that produce a number of different products, or where uncertainty exists. The disadvantages of oligopolies Oligopolies can be criticised on a number of obvious grounds, including: High concentration reduces consumer choice.
Such a big liar and corrupted person. Your life will be better for it. In many cases, tacit collusion is difficult or impossible to prove, though regulators are becoming increasingly sophisticated in developing new methods of detection.
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