Average cost pricing is found
A) when supply equals demand.
B) when AC = MR.
C) when P = 0.
D) where AC = AR.

Name: Average cost pricing is found A) when supply equals demand. B) when AC = MR. C) when P = 0. D) where AC = AR.
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Question

Quizplus · Accepted Answer

Average cost pricing occurs where the average cost (AC) is equal to the average revenue (AR), ensuring that the firm covers its costs and earns a normal profit but does not necessarily maximize profit.

Average Cost Pricing Is Found