Solved

If a Firm Has No Extra Capacity and a Customer

Question 109

Multiple Choice

If a firm has no extra capacity and a customer asks for a special order, what price is acceptable (assuming there are no relevant qualitative factors) ?


A) The regular price because this order replaces regular business
B) Only variable cost
C) Variable cost plus average fixed cost
D) Only the average fixed cost

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions