Setting a fair price means
A) c and e
B) lowering the price until the monopolist says "unfair"
C) pricing at the point where average fixed and average variable costs sum to the price
D) imposing unreasonable restrictions on the price making capability of competitive firms
E) pricing as if the market were actually competitive

Question

Quizplus · Accepted Answer

Setting a fair price involves pricing as if the market were competitive and considering the sum of average fixed and average variable costs to match the price, which are options C and E combined, hence A (C and E) is correct.

Setting a Fair Price Means