In a long-run, it is worthwhile to sell a product only if the selling price exceeds ________.
A) the total of all the direct costs of the product
B) the total manufacturing costs of the product
C) the total of the fixed costs of the value chain
D) full cost of the product and a markup that provides an adequate return on capital

Question

Quizplus · Accepted Answer

Selling a product at a price that covers its full cost and provides a markup for an adequate return on capital investment is important for the long-term success of a business. This approach ensures that the product generates enough profit to sustain the business and that the investment is worthwhile. Options A, B, and C do not take into account all the indirect costs associated with the product and may result in underpricing or loss.

In a Long-Run, It Is Worthwhile to Sell a Product