Ramsey pricing involves balancing prices and price structures, ranging from low to high pricing policies. Prices are set based on the trade-off between covering costs and making profits. The pricing strategy is similar to that of a profit-maximizing monopolist. Higher price-cost margins result in less price elasticity. Prices are either above or below costs, with positive margins leading to higher prices for less elastic goods. This approach can help public enterprises break even under increasing returns to scale.