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 run and long run
D) neither in the short run nor the long run

Question

Quizplus · Accepted Answer

In the short run, a company may be able to sell a product for just above the variable costs and expenses since it does not have the ability to adjust all of its fixed costs in the short term. However, in the long run, it is not sustainable to continue selling a product for just above the variable costs and expenses as the company will not be able to earn enough profits to cover its fixed costs and make a sufficient return on investment.

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