8-5 Time Horizon & Pricing (17 pages)

Time Horizons & Pricing

Short-run pricing decisions have a time horizon of less than one year and include decisions such as:

-Pricing a one-time-only special order with no long-run implications

-Adjusting product mix and output volume in a competitive market

Long-run pricing decisions have a time horizon of one year or longer and include decisions such as:

-Pricing a product in a major market where there is some leeway 余地 in setting price

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