How do companies that earn from production determine their prices?

How do companies that earn from production determine their prices?
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Answer :

Revenue should be more than the cost of production in order to make a profit. Calculate how much it costs to make your product (including labor and materials) and look at how much competitors are charging. If your price is too much more than theirs, it’ll be hard to compete. Especially if your product is new on the market and hasn’t made a name for itself yet (meaning no one has seen what it’s capable of). If it’s lower than competitor pricing, your product will appeal to the buyers looking for a deal.
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