1.Which of the following is more likely to be consistent with the aim of maximising profits: pricing on the basis of (a) cost per unit plus a variable percentage mark-up; (b) cost per unit plus a fixed percentage mark-up?
2.Explain the differences in Table (b) between the importance attached to the different factors leading to price increases and those leading to price reductions.
3. What type of price discrimination is occurring according to Table (d) where firms have the possibility to charge different prices in different locations?
4. Why might we require a more detailed analysis of firm size and the different industrial sectors within the survey in order to evaluate the price-setting data presented above?