Post date: 10/07/2013 - 02:46

The Modem Theory of pricing of factors of production also known as "Demand and Supply Theory" gives a satisfactory answer to the problem of determining factor prices. According to the theory just as the price of a commodity which is determined by the forces of demand & supply, similarly the price of a factor of production is also determined by the demand for that factor and its supply.

Post date: 07/31/2011 - 03:03

Pricing is all around us. We pay for house rent, we pay for taxi, if need a laptop we must pay to buy it. Everything has a price. Who determine the price structure of a product, top management, CEO, the entrepreneur, answer is no. Basically two factors, which affect the company price decision and strategy.