Agatha's Inc is about to introduce a new product in the market, but is not sure as to how it should price the product. The company is facing intense competition from 5 other companies

In the past, it has also failed to keep up with the changing consumer wants. In such a situation, what should be its main objective?

The main objective for Agatha's Inc. should be survival. As long as prices cover variable costs and some fixed costs, the company will stay in business. But, it is worthwhile to remember that survival is a short-run objective. In the long run, the company has to add value to its product or face extinction.