-If an average cost pricing rule is imposed on the firm in the figure above, the price will be
A) $4 per unit.
B) $16 per unit.
C) $20 per unit.
D) $40 per unit.

Name: -If an average cost pricing rule is imposed on the firm in the figure above, the price will be A) $4 per unit. B) $16 per unit. C) $20 per unit. D) $40 per unit.
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Question

-If an average cost pricing rule is imposed on the firm in the figure above, the price will be
A) $4 per unit. 
B) $16 per unit. 
C) $20 per unit. 
D) $40 per unit.

Quizplus · Accepted Answer

An average cost pricing rule sets the price equal to the average total cost. In this scenario, the price is $16 per unit, which is the average cost.

-If an Average Cost Pricing Rule Is Imposed on the Firm