With marginal cost pricing

Question

Quizplus · Accepted Answer

Marginal cost pricing involves setting the price of a good or service equal to the cost to society of producing one more unit of the good. This ensures that all the opportunity costs of production are covered and there will not be any economic profit in the short run. The goal of marginal cost pricing is to allocate resources efficiently and ensure that resources are not wasted on producing too much of a good with little benefit to society. Marginal benefits may be less than marginal costs in certain situations, but this does not affect the pricing strategy of marginal cost pricing.

With Marginal Cost Pricing