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

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