Theoretically, the “optimal pricing decision is a blending of cost and demand considerations.” Yet the textbook states: “An effective pricing decision should involve an optimal blending of, not a comp

Theoretically, the “optimal pricing decision is a blending of cost and demand considerations.” Yet the textbook states: “An effective pricing decision should involve an optimal blending of, not a comp

Theoretically, the “optimal pricing decision is a blending of cost and demand considerations.” Yet the textbook states: “An effective pricing decision should involve an optimal blending of, not a compromise between, internal financial constraints and external market conditions.”  What are the roles of non-incremental fixed and sunk costs, as internal financial constraints, and competitive advantage, as external market conditions, in achieving the best pricing strategy (i.e., pricing decision)?  Explain your answer.