If a marginal cost pricing rule is imposed on the firm in the figure above, the price will be
A) $5 per unit.
B) $25 per unit.
C) $40 per unit.
D) $20 per unit.

Name: If a marginal cost pricing rule is imposed on the firm in the figure above, the price will be A) $5 per unit. B) $25 per unit. C) $40 per unit. D) $20 per unit.
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Question

Quizplus · Accepted Answer

Marginal cost pricing sets the price equal to marginal cost, which is $5 in this case.

If a Marginal Cost Pricing Rule Is Imposed on the Firm