In the long run, the J.M. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.
A) a 10% return on investment
B) product development costs
C) total costs
D) advertising expenditures
E) Nestlé's prices

Question

Quizplus · Accepted Answer

Total costs represent the minimum price that the company must charge to cover all of its expenses and still make a profit. This includes not only the cost of the peanuts and other ingredients used to make the peanut butter, but also the cost of marketing, distribution, and other overhead expenses. Therefore, the J.M. Smucker Company must view total costs as the absolute lowest price for its Jif brand peanut butter in the long run.

In the Long Run, the J