An efficient price is a price set at ________ cost.

Question

Quizplus · Accepted Answer

An efficient price is set at the point where marginal cost equals marginal revenue, which ensures that the additional cost to produce one more unit is equal to the additional revenue earned from selling one more unit. This helps maximize profits for the firm. Fixed costs, average fixed costs, and average variable costs do not factor into determining an efficient price. Therefore, the best choice is A) marginal.

An Efficient Price Is a Price Set at ________ Cost