1 The prices of our consulting services are determined by whatever our competitors charge for similar services. Costs are irrelevant. Do you agree with this statement? Explain your answer. 2 Can you think of a situation in which a firm would deliberately charge a price below cost? Why would firms do this? 3 What are the key factors to consider in setting prices? If you were a hairdresser, what price would you charge for a haircut and why?