how are prices fixed by seller/producer???
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In any market transaction between a seller and a buyer, the price of the good or service is determined by supply and demand in a market.
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Prices are fixed by seller/producer in the following ways -
• First of all the seller and producer calculates the total cost of the production of a product.
• Then the seller adds his/her profit amount with the manufacturing cost and finally the taxes are also added in the total amount.
• That total amount becomes the MRP (maximum retail price) of that product when it reaches the consumer market.
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