Pricing

The external factors that effect the pricing, are the different kinds of markets.

Pure competition
The market consist of many buyers and sellers trading an uniform product, such as wheat, copper, etc. No single buyer or seller has much effect on the market price. The sellers in these markets do not spend time on marketing strategies (advertising, research, promotion)

Monopolistic competition
A market which many buyers and sellers trade over a range of prices rather than a single market price.
A range of prices occurs because sellers can differentiate their offers to buyers. Either the quality of the product, features or style, through the use of branding, availability, advertising and personal selling.

Oligopolistic competition
A market in which there are a few sellers that are highly sensitive to each others pricing and marketing strategies. If an oligopolist raises its prices the competitors might not follow, and the oligopolist would then have top retract the price increase or risk losing customers the competitors.

Pure monopoly
The market consist of one seller, the seller may be a government monopoly or a private regulated monopoly. Pricing is handled in differently in each case, if it’s a government monopoly it might set the prices low because its important buyers can afford it. And the prices could also be higher to slow down the consumption on certain products.