In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.
A)a 10 percent 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 J. F. Smucker must charge for its Jif brand peanut butter to cover all of its costs and remain profitable in the long run. This includes expenses such as production, distribution, packaging, and overhead costs. Pricing below total costs would result in losses for the company over time.

In the Long Run, the J