In a long-run,it is worthwhile to sell a product only if the selling price exceeds ________.
A) direct costs of the product
B) manufacturing costs of the product
C) fixed cost of the product
D) full cost of the product and a markup

Question

Quizplus · Accepted Answer

Selling a product at a price that exceeds its full cost (sum of direct costs, manufacturing costs, and fixed costs) and adding a markup allows for profits to be generated in the long-run. Only relying on covering direct or manufacturing costs may lead to loss-making ventures or selling the product below its potential value.

In a Long-Run,it Is Worthwhile to Sell a Product Only