In the short run,the practice of setting price so that it must at least equal the differential cost of producing and selling the product will result in which of the following?
A)predatory pricing violation.
B)anti-trust violation.
C)dumping.
D)positive contribution to covering fixed costs and generating profit.

Question

Quizplus · Accepted Answer

Setting prices that cover the differential cost of the product in the short run will result in a positive contribution to covering the fixed costs and generating profit, as it allows the company to at least break even on the production and sale of the product. This is a common pricing strategy used by businesses to ensure profitability. It is not predatory pricing, anti-trust violation or dumping, which involve more complex and unethical pricing practices.

In the Short Run,the Practice of Setting Price So That