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Q. Show the Pricing during market growth?
Pricing during market growth: in the growth stage there is steep rise in the turnover of the company.
As prices of new competitors depend increasingly upon those of their competitors non price competitors increase. Promotional efforts are on increase. Competitors spend more on changing or improving their products extending their distribution and the like. Those who succeed in non price competition use premium pricing and become leaders in the market and others follow them in pricing their product at competitive rates.
GRAPHICAL METHOD Graphical methods can be used in games with no saddle points and having pay off m X 2 or 2 X n matrix. The aim is to substitute a much simpler 2 X 2 matrix for
bases of classifying budgets
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Exercise 12-7 sell or process further
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