Theory of Full-Cost or Average Cost Pricing

The below mentioned article provides an overview on the theory of full-cost or average cost pricing. In 1939, Hall and Hitch of the University of Oxford mounted a ‘root-and-branch’ attack on the notion of profit maximisation on the basis of answers to questionnaires of 38 entrepreneurs, 33 of whom were manufacturers, 3 retailers and 2 builders. Hall and Hitch sought [...]