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Marginal Costs

Want to Understand Why Things Are Happening? Dig Into the Details

George Bradt | Posted 03.19.2014 | Business
George Bradt

Unit-level profitability is a non-trivial matter in determining the right price for your product or service. If you price below your marginal cost, then the more you sell, the more money you lose. If you over-allocate fix costs and try to price to cover those costs, your competitors can undercut you.