The Price Does Not Need to Cover Costs for What

question 36

Multiple Choice

The price does not need to cover costs for what kinds of organisations?

• A) All types of for-profit organisations
• B) For profit retail sales organisations
• C) Not-for-profit organisations
• D) For profit manufacturing organisations

---

Definitions:

Selling Price

The price at which a product or service is sold to customers.

Extraction Cost

The expenses associated with the removal of resources or raw materials from their natural setting.

Optimal Quantity

The amount of a product or service that achieves the best balance between costs and benefits, maximizing utility or profit.

Extract

To remove or take out something by physical or chemical process, often used in reference to natural resources.