It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in
A)the long run
B)the short run
C)both the short and long run
D)neither the short nor the long run

Question

Quizplus · Accepted Answer

In the short run, it can be acceptable to have the selling price of a product just above the variable costs and expenses to cover immediate expenses, maintain cash flow, or penetrate a market. However, in the long run, prices need to cover both variable and fixed costs to ensure business sustainability.

It Would Be Acceptable to Have the Selling Price of a Product