Which of the Following Is True About Production Cost as a Pricing

question 8

Multiple Choice

Which of the following is true about production cost as a pricing constraint?

• A)In the short run, a firm's price must cover all the costs of producing a product.
• B)Covering the firm's costs doesn't affect pricing the product at all.
• C)In the long run, a firm's costs set a floor under its price.
• D)In the long run, a firm's costs set a ceiling over its price.

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Definitions:

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