All of the following statements are correct EXCEPT:
(a) The short-run price needs to cover only the costs that vary in the short run.
(b) The short-run price needs to cover both variable and fixed costs.
(c) The long-run price needs to cover both fixed and variable costs.
(d) Incremental costs are relevant costs in the short run.
Solution Preview
Choose: (b) The short-run price needs to cover both variable and fixed costs.
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<br>Obviously, a ...
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