It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in:
A) the long run
B) the short run
C) both the short run and long run
D) monopoly situations

Question

Quizplus · Accepted Answer

In the short run, a company may set the selling price just above the variable costs and expenses to stay in business or cover their immediate bills. However, in the long run, the company must cover both variable and fixed costs to sustain operations and growth. In monopoly situations, the company can set a higher price as there are no substitutes available in the market.

It Would Be Acceptable to Have the Selling Price of a Product