Administered price definitions
| Word backwards | deretsinimda ecirp |
|---|---|
| Part of speech | "administered price" is a noun phrase. |
| Syllabic division | ad-min-is-tered price |
| Plural | The plural of the word "administered price" is "administered prices." |
| Total letters | 17 |
| Vogais (3) | a,i,e |
| Consonants (8) | d,m,n,s,t,r,p,c |
Administered price refers to a pricing mechanism in which a price is set by a regulatory authority rather than by market forces. This type of pricing is often used in industries where competition may not exist or may not be sufficient to ensure fair pricing for consumers.
Role of Administered Prices
Administered prices play a crucial role in regulating industries such as utilities, healthcare, and transportation. By setting prices through regulatory bodies, the government can ensure that essential goods and services remain affordable and accessible to the public.
Challenges of Administered Prices
While administered prices can benefit consumers by preventing price gouging or monopolistic practices, they can also present challenges. For example, setting prices too low may deter investment in necessary infrastructure or lead to shortages of goods and services.
Examples of Administered Prices
Examples of administered prices include regulated electricity rates, government-mandated healthcare fees, and controlled airfares. In these cases, prices are typically set based on cost recovery principles, ensuring that providers can cover their expenses while still providing affordable services.
Overall, administered prices are a tool used by governments to ensure fair pricing in industries where market forces may not be enough to protect consumers. While they have their benefits, it is important to carefully consider the impact of such pricing mechanisms to ensure a balance between affordability and sustainability.
Administered price Examples
- The company set an administered price for their new product to compete with other brands in the market.
- The government proposed an administered price for certain essential goods to control inflation.
- The airline industry often uses administered prices for tickets based on demand and seasonality.
- The school cafeteria follows an administered price system for meals to ensure affordability for students.
- Some countries regulate administered prices for utilities such as water and electricity to protect consumers.
- The auto industry utilizes administered prices for cars to maintain competitiveness and profitability.
- Farmers receive an administered price for their crops to stabilize agricultural markets.
- Retailers sometimes adjust administered prices for products based on customer demand and trends.
- Pharmaceutical companies may set administered prices for medications to make them accessible to patients.
- In some regions, governments implement administered prices for public transportation to ensure affordability for commuters.