The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Average Cost Pricing

  • K. J. Coutts
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_538

Abstract

Average cost pricing and its associated variations refer to the practice of firms’ price decisions. With the exception of certain markets for primary commodities and financial transactions where either an auctioneer or jobbers make prices, the vast majority of goods and services are traded in markets where firms must set prices. Once set, firms’ sales are limited by the size of the market and the competition of rivals.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • K. J. Coutts
    • 1
  1. 1.