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Geographical pricing. Average gasoline prices by country. Geographical pricing, in marketing, is the practice of modifying a basic list price based on the geographical location of the buyer. It is intended to reflect the costs of shipping to different locations. There are several ways to apply the cost of shipping to the prices.
Geographic Practice Cost Index is used along with Relative Value Units by Medicare to determine allowable payment amounts for medical procedures. There are multiple GPCIs: Cost of Living, Malpractice, and Practice Cost/Expense. These categories allow Medicare to adjust reimbursement rates to take into account regional and practice-specific factors.
Price lining is the use of a limited number of prices for all product offered by a business. Price lining is a tradition started in the old five and dime stores in which everything cost either 5 or 10 cents. In price lining, the price remains constant but quality or extent of product or service adjusted to reflect changes in cost.
In 1929, Hotelling developed a location model that demonstrates the relationship between location and pricing behavior of firms. [1] He represented this notion through a line of fixed length. Assuming all consumers are identical (except for location) and consumers are evenly dispersed along the line, both the firms and consumer respond to ...
Absorption pricing. This pricing method aims to recover all the costs of producing a product. The price of a product includes the variable cost of each item plus a proportionate amount of the fixed costs: Unit Variable Costs + (Overhead + Managing Costs) รท Number of units produced = Absorption Price. Fixed or variable costs, direct or indirect ...
Economic geography is the subfield of human geography that studies economic ... geography of transportation, real estate price evaluation, regional and global ...
Bid rent curve. The bid rent theory is a geographical economic theory that refers to how the price and demand for real estate change as the distance from the central business district (CBD) increases. It states that different land users will compete with one another for land close to the city centre. This is based upon the idea that retail ...
However, some prices under price discrimination may be lower than the price charged by a single-price monopolist. Price discrimination is utilized by the monopolist to recapture some deadweight loss. [6] This pricing strategy enables firms to capture additional consumer surplus and maximize their profits while benefiting some consumers at lower ...