One way a company can cover its costs and,at the same time,obey a marginal cost pricing rule is by
A) choosing output levels according to the profit-maximizing rule.
B) using price discrimination.
C) increasing production.
D) decreasing production.
E) decreasing its marginal cost but not changing its average total cost.

Question

Quizplus · Accepted Answer

Using price discrimination can allow a company to cover its costs and still adhere to a marginal cost pricing rule. By charging different prices to different consumer groups, the company can capture a larger portion of the consumer surplus and increase revenue, without exceeding the marginal cost of production. This can result in increased profits for the company while still adhering to the principle of marginal cost pricing.

One Way a Company Can Cover Its Costs And,at the Same