In the short run,the minimum selling price should be equal to ________.
A)all variable costs of producing,selling and distributing the good or service
B)all fixed costs of producing,selling and distributing the good or service
C)all fixed and variable costs of producing,selling,and distributing the good or service
D)all manufacturing costs

Question

Quizplus · Accepted Answer

In the short run, a business should set the minimum selling price equal to all variable costs of producing, selling, and distributing the good or service, so as to at least cover these costs and avoid losses. Fixed costs are sunk costs in the short run and should not be factored into the pricing decision. Manufacturing costs might not include all the costs of selling and distributing the product.

In the Short Run,the Minimum Selling Price Should Be Equal