Economists Ordinarily Favor Setting Price Equal to Marginal Cost When

question 82

True/False

Economists ordinarily favor setting price equal to marginal cost when this option is feasible.

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Sod

A layer of earth in which the roots of grass are embedded, commonly used for lawns, golf courses, and sports fields to quickly establish a green surface.

Marginal Costs

The expense incurred from the production of one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.