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These companies normally have a really sturdy model loyalty amongst their clients and tend to monopolize that phase (significantly in smaller markets), making it less enticing to rivals thus mitigating the risk of attack from different niche players, new entrants or broad market competitors seeking to enlarge their customer base via product or disinfecting service specialization.
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Cost-plus pricing shouldn’t be frequent in markets which can be (nearly) completely aggressive , how to sanitize wherein costs and output are driven to the point at which marginal cost equals marginal income In the long run, marginal and average prices (as in value-plus) are inclined to converge, reducing the difference between the two strategies.
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