Log in or register. The Gilder Lehrman Institute of American History. Log in to favorite pages Share page Print page. The Patrons of Husbandry, or the Grange, was founded in 1867 to advance methods of agriculture, as well as to promote the social and economic needs of farmers in the United States.
Average Cost pricing: One possibility is that the government regulator might want to allow the firm to charge a slightly higher price, but make zero economic profit. This is accomplished when P = AC, an approach that is called Average Cost pricing.
The most profitable pricing policy is complete price discrimination, where each unit is priced at the benefit that the unit provides to its buyer. To implement this policy, however, the seller must know each potential buyerâs individual demand curve and be able to set different prices for every unit of the product.. Complete price discrimination: the pricing policy where a seller prices each unit of output at the buyerâs benefit and sells a quantity where the marginal benefit equals the marginal cost. (a) All the buyer surplus is extracted. Every buyer is charged the maximum she is willing for pay for each unit.