The Ramsey pricing rule indicates that we should continue raising prices proportionately until enough surplus exists to cover the

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The Ramsey pricing rule suggests that prices should be set in such a way that they cover the common fixed costs of production. This involves setting higher prices for products with more inelastic demand and lower prices for those with more elastic demand, ensuring that the total revenue covers the overall fixed costs of the company.

The Ramsey Pricing Rule Indicates That We Should Continue Raising