When setting sales prices in the long run,the sales price must cover the full cost-including fixed costs.

Question

Quizplus · Accepted Answer

Setting a sales price that only covers variable costs is not sustainable in the long run as it does not cover all the costs involved in producing and selling a product or service, including fixed costs. Therefore, the sales price must cover the full cost, including fixed costs, to ensure profitability and sustainability.

When Setting Sales Prices in the Long Run,the Sales Price