Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.
A)dividend cost
B)liquidity cost
C)discretionary cost
D)marginal cost
E)elastic cost

Question

Quizplus · Accepted Answer

The missing cost concept is marginal cost, which is the additional cost of producing one additional unit of output. It is important to consider marginal cost in pricing decisions because it helps determine the optimal level of production and can inform pricing strategies such as marginal cost pricing.

Five Cost Concepts Are Important in Pricing Decisions: Total Cost,fixed