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When would you want to use value-of-service pricing instead of cost-of-service pricing? When would you like use...

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Economics

When would you want to use value-of-service pricing instead ofcost-of-service pricing?

When would you like use negotiated pricing?

Answer & Explanation Solved by verified expert
3.6 Ratings (612 Votes)
Costbased pricing uses the cost of manufacturing or of production as the pricing basis The costbased pricing business takes advantage of its expense to determine a price floor and a price limit The floor and ceiling for a particular good or service are the minimum and maximum prices they act as price range When the market dynamics are such that the prevailing selling price is below the price floor the business could be competing on the floor or trying to reduce the floors costs the    See Answer
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