Pricing refers to the process of determining how much to charge for a product or service. It involves considering various factors such as production costs, market demand, and competition. Businesses aim to set prices that attract customers while ensuring they can cover their expenses and make a profit. Different pricing strategies can be used, such as cost-plus pricing, where a fixed percentage is added to the cost of production, or value-based pricing, which focuses on the perceived value to the customer. Understanding pricing is essential for both businesses and consumers to make informed decisions in the marketplace.