Economists argue that there are no practical problems with marginal-cost pricing as a regulatory system.

Question

Quizplus · Accepted Answer

Economists recognize several practical problems with marginal-cost pricing, including difficulties in accurately determining marginal costs, potential financial losses for firms if average costs exceed marginal costs, and the challenge of applying this approach in industries with significant fixed costs.

Economists Argue That There Are No Practical Problems with Marginal-Cost