In deciding whether to accept business at a special price,the short- run price should be set high enough to cover all costs and expenses,plus provide a reasonable amount for profit.

Question

Quizplus · Accepted Answer

In the short run, a business may accept a special price that covers only variable costs and contributes to fixed costs, even if it doesn't cover all costs and expenses, to utilize excess capacity or gain market entry.

In Deciding Whether to Accept Business at a Special Price,the