Under the Marginal cost pricing, the price is determined on the basis of; A. Fixed cost B. Variable cost C. Total cost D. Average cost
Question
Solution 1
Under the Marginal cost pricing, the price is determined on the basis of the variable cost. So, the correct answer is B. Variable cost.
Here's why:
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Marginal cost refers to the cost of producing one additional unit of a product.
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This cost is directly related to variable costs, which are co Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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