In the short run,when managers set prices for products,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, the minimum selling price should cover all variable costs of producing, selling, and distributing the good or service to ensure the company can cover these costs that change with production volume. Fixed costs are not considered in the minimum selling price in the short run because they do not change with the level of production or sales.

In the Short Run,when Managers Set Prices for Products,the Minimum