In the short run, the minimum price to be quoted for a product should be equal to the costs that may be avoided by not landing the order.

Name: In the short run, the minimum price to be quoted for a product should be equal to the costs that may be avoided by not landing the order.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In the short run, the minimum price should cover the variable costs and any other costs that can be avoided if the order is not accepted, ensuring no additional loss is incurred.

In the Short Run, the Minimum Price to Be Quoted