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Because in many industries the cost of generating new ideas is so high, firms must charge a price ________ cost.a. equal to the marginalb. higher than the marginalc. lower than the marginald. equal to
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Because in many industries the cost of generating new ideas is so high, firms must charge a price ________ cost.a. equal to the marginalb. higher than the marginalc. lower than the marginald. equal to the average fixede. lower than the average fixed

User Siamak Motlagh
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Answer:

B. higher than the marginal

Step-by-step explanation:

Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.

Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.

Because in many industries the cost of generating new ideas is so high, firms must charge a price higher than marginal cost in order to maximize profits or increase the amount of profits generated.

User Pedro Varela
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