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margin - difference between the cost of production and price. Cost - plus pricing - calculate cost of production per unit and set price above this cost.contribution or absorption cost pricing - price set above viable cost - the difference is the contribution.Psychological pricing- based on assumption consumers do not behave rationally.Penetration pricing - price set to penetrate the market- -encourage volume sales.Market skimming - price set to skim profit,firm may have some monopoly power in the market.
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