To set a price that is equal to the marginal cost is

Name: To set a price that is equal to the marginal cost is
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Marginal-cost pricing sets the price equal to the marginal cost, which is the cost of producing an additional unit of output. This method ensures that the firm is covering its variable costs and making some contribution to its fixed costs, which helps to ensure long-term profitability. This strategy is commonly used in competitive markets where firms have limited pricing power.

To Set a Price That Is Equal to the Marginal