Price as an Economic Category
Year: 2024
Type: article
Abstract: Price is one of the most important economic categories, reflecting the value of goods and services and regulating demand and supply in the market. It performs several key functions: an accounting function that allows determining the cost of production, exchange, and consumption; a stimulating function that enhances the efficiency of enterprises; and a distributive function that defines each market participant’s share in the overall economic outcome. The price formation process is complex and depends on numerous factors, such as production costs, competitive environment, demand elasticity, macroeconomic conditions, and the strategic goals of the enterprise. Effective pricing ensures a stable income for the company and allows it to adapt to changing market conditions, thereby enhancing its competitiveness. In a market economy, price is a crucial tool that requires detailed analysis and an appropriate approach to its establishment, including methods capable of considering changes in demand, supply, and general economic trends. This study examines the essence of price as an economic category, its functions, and its significance in a market economy. It analyzes the main factors affecting the pricing process, such as production costs, competition, demand, economic conditions, and the strategic goals of enterprises. Additionally, various pricing theories are reviewed and analyzed, allowing for a deeper understanding of the price formation process. The study includes an overview of modern pricing methods and their practical applications, which ensure the effectiveness and stability of the enterprise in the market. Special attention is given to the importance of setting prices for scientific and technical products, which require specialized approaches due to high development costs and the unique characteristics of such goods.
Authors: Mariia Klymentova, Tetiana Kobielieva
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408205063