OUTPUT plus a markup to cover overhead costs and profits. Having worked out what average TOTAL cost would be if the level of output EXPECTED for the next period of time were actually achieved, firms add to this a 'satisfactory' PROFIT margin. This is known as 'full-cost' pricing. The price is equal to 'full' cost, including an acceptable profit.

"> OUTPUT plus a markup to cover overhead costs and profits. Having worked out what average TOTAL cost would be if the level of output EXPECTED for the next period of time were actually achieved, firms add to this a 'satisfactory' PROFIT margin. This is known as 'full-cost' pricing. The price is equal to 'full' cost, including an acceptable profit.

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Under full cost pricing, price is determined

Economics Economics miscellaneous in Economics 4 months ago

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Full cost pricing is a practice where the price of a product is calculated by a firm on the basis of its direct costs per unit of OUTPUT plus a markup to cover overhead costs and profits. Having worked out what average TOTAL cost would be if the level of output EXPECTED for the next period of time were actually achieved, firms add to this a 'satisfactory' PROFIT margin. This is known as 'full-cost' pricing. The price is equal to 'full' cost, including an acceptable profit.

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Posted on 09 Jun 2025, this text provides information on Economics related to Economics miscellaneous in Economics. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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