Question

what factor should kept in mind by a new company while formulating its price policy​

Answer 1

Answer:

ꜰᴏʀ ꜱᴇᴛᴛɪɴɢ ᴩʀɪᴄᴇꜱ ᴀᴩᴀʀᴛ ꜰʀᴏᴍ ᴄᴏꜱᴛꜱ, ᴀ ɴᴜᴍʙᴇʀ ᴏꜰ ᴏᴛʜᴇʀ ꜰᴀᴄᴛᴏʀꜱ ʜᴀᴠᴇ ᴛᴏ ʙᴇ ᴛᴀᴋᴇɴ ɪɴᴛᴏ ᴄᴏɴꜱɪᴅᴇʀᴀᴛɪᴏɴ. ᴛʜᴇy ᴀʀᴇ ᴅᴇᴍᴀɴᴅ ᴀɴᴅ ᴄᴏᴍᴩᴇᴛɪᴛɪᴏɴ. ᴄᴏꜱᴛꜱ ᴀʀᴇ ᴏꜰ ᴛᴡᴏ ᴛyᴩᴇꜱ: ꜰɪxᴇᴅ ᴄᴏꜱᴛꜱ ᴀɴᴅ ᴠᴀʀɪᴀʙʟᴇ ᴄᴏꜱᴛꜱ.

Answer 2

Answer:

For setting prices apart from costs, a number of other factors have to be taken into consideration. They are demand and competition. Costs are of two types: fixed costs and variable costs.