The Impact of Market Conditions on Pricing Decisions in Hard Coal Mines

Abstract

The article presents the theoretical underpinnings of how the scale of production impacts on the unit cost of manufactured pro- ducts, as well as on the economic patterns underlying associated pricing decisions. The theoretical considerations are supported by relevant calculations performed for a case study involving a real-life hard coal mine. Attention is paid to the specific nature of the mining industry and the associated impediments to applying cost formulas in the selling pricing decision-making process. The article also emphasises the necessity of taking a flexible approach to setting coal prices in the current market conditions, providing proposals of solutions that could improve the financial soundness of mines.