Why, in Some Cases, Is Marginal Cost Pricing (Where Companies

question 69

Multiple Choice

Why, in some cases, is marginal cost pricing (where companies will set prices below full costs) used?

• A)To maximize profits
• B)To cover direct costs plus make a contribution to overheads where supply outstrips demand
• C)To beat competitors' pricing by a set marginal difference
• D)To maximise the impact of price points

---

Definitions:

Presidential Election

The process through which a country's citizens elect the President, often involving a campaign period, voting, and sometimes an electoral college system, as in the United States.

Alliance For Progress

A U.S. policy initiative aimed at strengthening economic cooperation between North and South America, launched in the early 1960s.

Latin America

A region consisting of countries in Central and South America and the Caribbean where Romance languages primarily Spanish and Portuguese, are spoken.

Loving V. Virginia

A landmark 1967 U.S. Supreme Court case that invalidated state laws prohibiting interracial marriage, marking a significant moment in the civil rights movement.