A major problem with average-cost pricing is that it does not allow for cost variations at different levels of output.

Name: A major problem with average-cost pricing is that it does not allow for cost variations at different levels of output.
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Question

Quizplus · Accepted Answer

Average-cost pricing assumes that costs remain constant across all levels of output, which is rarely the case in reality. This can lead to overpricing or underpricing of goods and services, depending on the actual production costs.

A Major Problem with Average-Cost Pricing Is That It Does