that's cost-plus pricing, and should be viewed as a relatively naive model that is no longer typically used for pricing. sophisticated pricing decisions are based on price elasticities to find the profit-maximizing price. apple is a notable example of a company that exhibits this type of pricing decision-making.
that's cost-plus pricing, and should be viewed as a relatively naive model that is no longer typically used for pricing. sophisticated pricing decisions are based on price elasticities to find the profit-maximizing price. apple is a notable example of a company that exhibits this type of pricing decision-making.