Marginal Cost Pricing Is a System of Pricing in Which

question 61

Multiple Choice

Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:

• A) the last unit produced and the firm earns zero profit.
• B) each unit produced and the firm earns zero profit.
• C) the last unit produced and the firm suffers a loss unless the government gives the firm a subsidy.
• D) the profit-maximization unit and the firm earns an economic profit.

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