Average Cost Pricing

Discipline: Economics

Average Cost Pricing, also referred to as full-cost- pricing, or full-cost-plus pricing, is a pricing method developed by ROBERT ERNEST HALL (1943- ) and CHARLES J. HITCH (1910-1995).

Average Cost Pricing, as demonstrated by the research by HALL and HITCH, holds that firms determine the selling prices of their products by adding a mark-up (or profit) to their average manufacturing costs.

Also see: administered pricing, marginal cost pricing, mark up pricing, rate of return pricing, target return pricing

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